Pace Company Issued Bonds with a Face Value of $200,000

question 33

Multiple Choice

Pace Company issued bonds with a face value of $200,000 at 97.How does the issuance affect the company's accounting equation?

• A)Assets and liabilities would both increase by $200,000.
• B)Assets and liabilities would both increase by $194,000.
• C)Assets would increase by $194,000 and liabilities would increase by $200,000.
• D)Assets would increase by $200,000,and liabilities would increase by $194,000.

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Definitions:

Position Power

The authority and influence a person possesses within an organization, derived from their job or official position.

Personal Power

The influence or authority a person has over others, derived from their skills, qualities, or personal attributes, rather than their formal position.

Organizational Sources

The origins from which organizations draw their power, authority, resources, and information, crucial for their operation and success.

Expert Power

A form of power derived from possessing knowledge, skills, or expertise that others value, which can influence or control their behavior.