The Beginning and Ending Balances of Long-Term Debt Are $69,000

question 117

Multiple Choice

The beginning and ending balances of long-term debt are $69,000 and $40,200, respectively, and, cash payments for long-term debt during the year were $39,100. How much new long-term debt was issued during the year?

• A)New long-term debt issued during the year was $1100.
• B)New long-term debt issued during the year was $10,300.
• C)New long-term debt issued during the year was $28,800.
• D)New long-term debt issued during the year was $79,300.

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Definitions:

Diversified

A strategy that involves spreading investments across various financial instruments, industries, and other categories to reduce exposure to risk.

Portfolio

A range of investments held by an individual or institution, including stocks, bonds, commodities, and more, often diversified to spread risk.

Diversifiable Risk

The risk associated with individual investments that can be reduced or eliminated through diversification across various assets.

Systematic Risk

The risk of loss associated with the entire market or market segment.