If a Company Reports a Loss, It

question 47

Multiple Choice

If a company reports a loss, it

• A)may still have a net increase in cash.
• B)will not be able to pay cash dividends.
• C)will not be able to get a loan.
• D)will not be able to make capital expenditures.

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Definitions:

Bond

A financial device signifying a loan provided by an investor to a borrower, usually in the form of corporations or government entities.

Buyer Pays

A term indicating that the buyer is responsible for the costs of goods shipping, insurance, and any related expenses incurred until delivery is complete.

Accrued Interest

Interest that has accumulated over time but has not yet been paid or received.

Bond Indenture

A legal contract between a bond issuer and a bondholder that specifies the terms of the bond, such as its maturity date, face value, coupon rate, and any special features.