Which of the Following Statements Is NOT True Regarding Source

question 81

Multiple Choice

Which of the following statements is NOT true regarding source of capital transactions?

• A)These processes should not be initiated unless there is specific authorization by management at a top level.
• B)Source of capital processes will result in potential dividend or interest payments.
• C)Retirement of debt is a source of capital process.
• D)The fact that these transactions and processes cannot occur without oversight by top management means other controls are not necessary.

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Definitions:

Debt Financing

A method of raising capital through borrowing money from external sources, such as banks or bond investors, which needs to be repaid at a future date along with interest.