Which of the Following Statements Is FALSE

question 88

Multiple Choice

Which of the following statements is FALSE?

• A)Bonds are securities sold by governments and corporations to raise money from investors today in exchange for promised future payments.
• B)By convention the coupon rate is expressed as an effective annual rate.
• C)Bonds typically make two types of payments to their holders.
• D)The time remaining until the repayment date is known as the term of the bond.

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Definitions:

Expense

Money spent or costs incurred by a business in the course of generating revenues.

Increase Stockholders' Equity

Refers to the growth in the equity portion of a company's balance sheet, signifying a rise in the net assets owned by shareholders.

Transactions

Financial events or exchanges that affect a company's assets, liabilities, or equity, and must be recorded in the accounting records.

Decrease Stockholders' Equity

A reduction in the value of ownership interest in a company, often due to losses, dividend payments, or share buybacks.