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Matura, Inc

Question 93

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Matura, Inc. reported the following activities for the year:
.Borrowed $350,000 from the bank to be repaid in 5 years
.Issued stock to investors for $40,000 cash
.Paid dividends to shareholders totaling $10,000
.Purchased equipment by promising to pay $150,000 to a creditor over the next 3 years
A. Identify which activities are debt investments.
B. Identify which activities are equity investments.

Correct Answer:

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A. Debt investments: Borrowed $350,000 f...

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