Which of the Following Statements Is NOT Correct

question 23

Multiple Choice

Which of the following statements is NOT correct?

• A)The credit rating is the measure of default risk estimated by a credit rating agency.
• B)Standard & Poor's is a credit rating agency.
• C)The rating assigned at the time of the issue is valid up to the maturity date of the security.
• D)The higher rating grade the security is assigned the lower is the assessed default risk.

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Definitions:

Debits

An accounting entry that increases an asset or expense account, or decreases a liability or equity account, recorded on the left side of the ledger.

Credits

Credits are accounting entries that increase liabilities or equity accounts, or decrease asset or expense accounts.

Trial Balance

A list of all general ledger accounts and their balances at a particular time, ensuring that debits equal credits in the double-entry accounting system.

Normal Balances

The side (debit or credit) of an account that is expected to have a higher balance given the account type's role in accounting.