The Total Assets and the Total Liabilities of Samantha Financial

question 10

Multiple Choice

The total assets and the total liabilities of Samantha Financial Services, are shown below. There were no capital contributions and withdrawals during the year. $$\begin{array} { | l | r | r | } \hline & \text { Assets } & \text { Liabilities } \\\hline \text { Beginning of year } & \$ 425,000 & \$ 280,000 \\\hline \text { End of year } & 500,000 & 325,000 \\\hline\end{array}$$ What was the amount of net income for the year?

• A) $75,000
• B) $45,000
• C) $30,000
• D) $120,000

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Definitions:

Coupon Rate

The interest rate paid by a bond issuer on its nominal value, determining the periodic interest payments to bondholders.

Yield To Maturity

The total return anticipated on a bond if held until its maturity date.

Intrinsic Value

The actual value of a company, stock, currency, or product determined through fundamental analysis without reference to its market value.

Annual

Pertaining to something that happens every year or is calculated over a year's time.