Which One of the Following Is the Most Junior in Terms

question 79

Multiple Choice

Which one of the following is the most junior in terms of its claim on earnings and assets?

• A) subordinated debenture
• B) mortgage bond
• C) collateral trust bond
• D) equipment trust certificate

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Definitions:

Reported Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue, as presented in financial statements.

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings as decided by the board of directors.

Fair Value Method

An accounting approach wherein assets and liabilities are priced at their current market value to provide a more accurate valuation on financial statements.

Stock Investments

Investments in shares of public companies, aiming to generate income through dividends or capital gains.