Spring Company Has Assets and Equity That Amount to $260,000

question 168

Multiple Choice

Spring Company has assets and equity that amount to $260,000 and $70,000,respectively.Liabilities total ________.

• A) $70,000
• B) $190,000
• C) $260,000
• D) $330,000

---

Definitions:

Annual Coupon

The yearly interest payment made by a bond issuer to its bondholders.

Market Rate

The prevailing interest rate available in the marketplace on investments or loans.

Sinking Funds

A fund formed by periodically setting aside money for the gradual repayment of a debt or replacement of a wasting asset over time.

Bondholders

Individuals or entities who hold the debt securities issued by corporations or governmental entities, thereby lending them money in return for interest payments and the repayment of principal.