Which of the Following Arguments Is Presented by FASB to Explain

question 59

Multiple Choice

Which of the following arguments is presented by FASB to explain why a gain is recorded by a company when its creditworthiness is becoming worse?

• A) The shareholders' loss is the debtholders' gain.
• B) The income of the company will increase as the amount of interest payment will reduce.
• C) The decrease in market rate will increase the value of equity shares.
• D) The debtholders' loss is the shareholders' gain.

---

Definitions:

Basketball Team

A group of players working together to compete in the sport of basketball, typically consisting of five active players on the court during a game.

Direct Instruction

A teaching method that involves explicit and systematic teaching through lectures or demonstrations of the material to students.

Constructivist Approach

An educational theory that emphasizes learning as an active process, where learners construct new ideas or concepts based upon their current/past knowledge.

External Motivation

Motivation to engage in an activity due to outside factors such as rewards or pressure from others, rather than for personal satisfaction or enjoyment.