The Amounts That the Business Entity Owes Its Creditors Are

question 60

Multiple Choice

The amounts that the business entity owes its creditors are referred to as

• A) assets.
• B) liabilities.
• C) owner's equity.
• D) revenues.
• E) expenses.

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Definitions:

Coupon

The interest rate stated on a bond when it's issued, which represents the annual interest payment made to bondholders.

Payable Semiannually

This term indicates that a payment, often in the context of bond interest or dividends, is made twice a year.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, including both interest payments and capital gains.

Face Value

The nominal value stated on a financial instrument, such as a bond or stock certificate, representing the amount due at maturity.