When a Company Collects the Face Value of a Long-Term

question 45

Multiple Choice

When a company collects the face value of a long-term investment in bonds at maturity,________.

• A) total assets and equity of the firm remains unchanged
• B) both assets and liabilities of the firm increase
• C) both assets and equity of the firm increase
• D) liabilities decrease and equity increases

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Definitions:

Population Size

The total number of individuals or items in the group that is being studied in a statistical analysis.

Normal Population

A statistical term referring to a population that follows a normal distribution where a large number of instances are clustered around the mean.

Probability Distribution

This mathematical method determines the chances of various results happening in an experiment.

Sample Mean

The average value of a sample, calculated by summing all observations and dividing by the number of observations.