__________ Are Bonds Which Lack Collateral Backing and Have a General

question 44

Multiple Choice

__________ are bonds which lack collateral backing and have a general claim on the issuer after debenture bondholders have been paid.

• A)General obligation bonds
• B)Revenue bonds
• C)Debenture bonds
• D)Subordinated debenture bonds

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Definitions:

Credit Sales

Credit sales are transactions where the customer purchases goods or services on credit, agreeing to pay the supplier at a later date.

COGS

Cost of Goods Sold represents the direct costs associated with the production of the goods sold by a company.

Line of Credit

A flexible loan arrangement with a financial institution that allows a borrower to draw funds up to a specified limit at any time.

Compensating Balance

A minimum bank account balance that a borrower must maintain as a condition for some types of loans and lines of credit.