Use the Following Statements to Answer This Question

question 43

Multiple Choice

Use the following statements to answer this question:
I.Tax deductibility of dividends makes equity very desirable.
II.An instrument can be classified as debt even if it is not so in the Income Tax Act.

• A)I and II are correct.
• B)I and II are incorrect.
• C)I is incorrect and II is correct.
• D)I is correct and II is incorrect.

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Definitions:

Cryptocurrency

Digital or virtual currency that uses cryptography for security, operating independently of a central bank.

Cryptography

The practice and study of techniques for secure communication in the presence of third parties by converting information into a code to prevent unauthorized access.

Money Order

A money order is a payment order for a pre-specified amount of money, serving as a method of transferring or sending money safely where the use of checks or cash is not possible or advised.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money to a specified person or the bearer, under certain conditions.