On December 31, 2013, Clark Sales Has a Bonds Payable

question 50

Multiple Choice

On December 31, 2013, Clark Sales has a Bonds Payable Balance of $89,000 and a Discount on Bonds Payable of $2,350. On the balance sheet, how will this information be shown?

• A)$89,000 less Discount of $2,350 for a Net Balance of $86,650
• B)$89,000 plus Discount for a total balance of $91,350
• C)$89,000
• D)$89,000 less one-tenth of $2,350 for a Net Balance of $88,765

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Definitions:

Stock Market Values

The overall value of shares traded within a stock market, representing the market's perception of the total worth of its listed companies.

Uncertainty

The degree to which the outcome of an event, choice, or investment is unknown.

Constant Growth DDM

The Dividend Discount Model assumes dividends grow at a constant rate indefinitely, used to estimate the value of a company's stock.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends.