A Corporation Seeking to Expand and Looking for the Least

question 195

Multiple Choice

A corporation seeking to expand and looking for the least risky financing option would choose

• A)stocks.
• B)bonds.
• C)retained earnings.
• D)a bank loan.

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Definitions:

Balance Sheet

This document outlines a business's resources, obligations, and the equity held by shareholders at a specified time.

Contra Asset

An account on a company's balance sheet that reduces the total amount of an associated asset account, often used for accumulated depreciation.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life to reflect the loss in value over time.

Fiscal Period

Any period of time used by an organization or government for accounting purposes and preparing financial reports, which could be a quarter, half-year, or any other designated period.