The Amount of Principal That Will Be Paid Back When

question 107

Multiple Choice

The amount of principal that will be paid back when a bond matures is called the

• A)dividend.
• B)yield.
• C)coupon.
• D)maturity value.
• E)face value.

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Definitions:

Direct Method

A cash flow statement preparation approach that lists major classes of gross cash receipts and payments.

Investing Activities

A section of the cash flow statement of a company which documents the buying and selling of long-term assets, including property, plant, and equipment.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of the entity.

Operating Activities

Transactions related to the primary operations of the business, such as cash received from sales of goods or services.