A Financial Security Is

question 3

Multiple Choice

A financial security is

• A)a jail term for a financial manager that has committed fraud.
• B)a contract that is created only when a new stock is issued to the public.
• C)a financial contract created whenever funds are transferred.
• D)a contract that is created only when a new bond is first sold.

---

Definitions:

Sale of Equipment

A financial transaction involving the disposal of equipment assets in exchange for cash or other compensation.

Note Receivable

A written promise for amounts to be received by a business, typically including interest, from another party.

Note Payable

A written promise to pay a certain sum of money on a specified future date, which is a liability on a company's balance sheet.

Specified Amount

An exact or particular amount that has been agreed upon or is required within a certain agreement or context.