There Is a Strong Similarity Between Bonds and Stocks Because

question 90

True/False

There is a strong similarity between bonds and stocks because of the nature of the cash flows. Both bonds and stocks offer assurance of regular payments through either dividend or interest, the final sale of stock is similar to the final return of a bond's principal.

---

Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including both materials and labor costs.

Job-Order Costing System

A cost accounting system that assigns costs to specific production batches or jobs, commonly used for customized orders.

Overapplied

A situation where the allocated manufacturing overhead cost exceeds the actual manufacturing overhead costs incurred.

Underapplied

A term referring to a situation where the allocated manufacturing overhead costs are less than the actual overhead costs incurred.