Refer to the Following List of Liability Balances at December

question 58

Multiple Choice

Refer to the following list of liability balances at December 31,2019. What is the total amount of long-term liabilities?

• A)$55,000
• B)$109,000
• C)$94,000
• D)$40,000

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Definitions:

New Shares

Additional stock issued by a company, potentially diluting the ownership percentage of existing shareholders.

Dividend Income

Earnings obtained by holding company shares, typically dispensed from the firm's earnings.

Optimal Dividend Policy

The best strategy a company can adopt for the payment of dividends, balancing between retaining earnings for growth and satisfying shareholders.

Residual

The amount remaining after the greater part has been deduced; in finance, often refers to the residual value or remaining interest in an asset.