Which of the Following Statements Regarding Sinking Fund Provisions Is

question 1

Multiple Choice

Which of the following statements regarding sinking fund provisions is FALSE?

• A)With a sinking fund,if a bond is trading below its face value,because the bonds are repurchased at par the decision as to which bonds to repurchase is made by lottery.
• B)With a sinking fund,instead of repaying the entire principal balance on the maturity date,the company makes regular payments into a sinking fund administered by a trustee over the life of the bond.
• C)Sinking fund provisions usually specify a minimum rate at which the issuer must contribute to the fund.
• D)Because the sinking fund allows the issuer to repurchase the bonds at par,the option to accelerate the payments is another form of call provision.

---

Definitions:

Experienced Responsibility

The feeling or belief by employees that they are responsible and accountable for their job tasks and outcomes.

Outcomes of Work

The results generated from performing tasks or jobs, which can include products, services, and changes in organizational or individual status.

Attributional Explanation

The process of interpreting events and determining the causes of an individual's behavior.

Negative Attributions

The tendency to explain the behavior of others based on internal, stable, and negative characteristics.