Which of the Following Defines Financial Expenses

question 11

Multiple Choice

Which of the following defines Financial expenses?

• A)Costs incurred in getting goods ready for sale,including purchase cost
• B)Costs associated with selling the goods or services of the business
• C)Costs of running the office functions and other costs that do not fit in any other category
• D)Costs associated with borrowing money to operate the business,as well as costs to provide credit to customers,bad debts and discount

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Definitions:

Subordinated Debt

A class of debt that is ranked below other debts with regard to claims on assets or earnings in the event of a liquidation of the issuer.

Payment Of Principal

The act of paying back the original amount borrowed in a loan, separate from interest payments.

Lower In Priority

A status indicating lesser importance or urgency in comparison to other items or tasks.

Convertible Bond

A bond that can be converted into a specified number of shares of stock at the owner’s discretion.