A Financial Security That Represents a Promise to Repay a Fixed

question 42

Multiple Choice

A financial security that represents a promise to repay a fixed amount of funds is a

• A)share of stock.
• B)coupon.
• C)dividend.
• D)bond.

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Definitions:

Accounts Payable

Money owed by a business to its suppliers or creditors for goods and services purchased on credit, typically due within a short-term period.

Net Working Capital Turnover

A ratio indicating how effectively a company generates sales for every unit of working capital used over a period.

Accounts Payable

The amount of money that a company owes to its creditors or suppliers for goods and services received but not yet paid for.

Net Income

The total earnings of a company after deducting all expenses, taxes, and losses.