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.

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Definitions:

Motor Neurons

Nerve cells forming part of the nervous system that transmit signals from the brain and spinal cord to muscles or glands, causing them to act.

Interneurons

Neurons within the brain and spinal cord; they communicate internally and process information between the sensory inputs and motor outputs.

Sensory Neurons

Neurons that transmit sensory information from the body's periphery to the central nervous system.

Sensory Neurons

These are nerve cells that are responsible for converting external stimuli from the environment into internal electrical impulses.