A company must repay the bank $10,000 cash in three years for a loan. The loan agreement specifies 8% interest compounded annually. The present value factor for three years at 8% is 0.7938. How much cash did the company receive from the bank on the day they borrowed this money? A $12,400 B $9,200 C $7,938 D $7,600 E $10,000

Accounts payable: A Are estimated liabilities. B Are amounts owed to suppliers for products and/or services purchased on credit. C Must be paid within 30 days. D Are long-term liabilities. E Do not include specific due dates.

A bond sells at a discount when the: A Contract rate is below the market rate. B Contract rate is equal to the market rate. C Bond has a short-term life. D Bond pays interest only once a year. E Contract rate is above the market rate.