Which One of the Following Statements Is True Regarding Bond

question 48

Multiple Choice

Which one of the following statements is true regarding bond characteristics?

• A)Corporate bonds do not have a maturity date.
• B)The maturity dates for corporate bonds are generally less than a year.
• C)Corporate bonds do not have to be repaid.
• D)Corporate bonds are a form of equity financing.
• E)Long-term corporate bonds have maturities over 10 years.

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Definitions:

Computerized Accounting System

An accounting system that utilizes software to record, store, and process financial transactions and data.

Month-end Postings

The journal entries made at the end of the month to record all transactions and adjustments for that month.

Financial Year

A period of twelve months used for accounting purposes and the preparation of financial statements, not necessarily aligning with the calendar year.

Cash Receipts Journal

A specialized accounting journal used to record all money that is received by a business.