Which of the Below Statements Is TRUE

question 43

Multiple Choice

Which of the below statements is TRUE?

• A) Fixed-rate securities are attractive to some institutional investors because they allow them to buy an asset with an income stream that closely matches the floating nature of the income of some of their liabilities.
• B) The lowest-grade bonds are designated by Moody's by the symbol Aaa and by the other three rating systems by the symbol AAA.
• C) Frequently, the ability of an issuer to make interest and principal payments is seriously and unexpectedly changed by a natural or industrial accident or some regulatory change.
• D) Each rating agency periodically publishes a table showing the upgrade and downgrade history of the issues that it rated.

---

Definitions:

Biological Asset

A living animal or plant.

AASB 141

Refers to the accounting standard issued by the Australian Accounting Standards Board that deals with agriculture and requires biological assets to be measured at their fair value less estimated point-of-sale costs.

IAS 41

An International Accounting Standard that outlines the accounting for agricultural activity, including the transformation of biological assets (living plants and animals) into agricultural produce.

Economic Benefits

The benefits obtained from the use of goods or services that contribute to an entity's cash flow.