Which of the Following Is a Characteristic of Bonds

question 15

Multiple Choice

Which of the following is a characteristic of bonds?

• A)pay zero nominal interest
• B)can be used for transactions
• C)are sold for a price that varies inversely with the interest rate
• D)all of the above
• E) none of the above

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Definitions:

Purchases Journal

A purchases journal is a special journal used in accounting to record all purchases of merchandise, supplies, or other assets on credit.

Horizontal Analysis

Financial analysis that compares an item in a current statement with the same item in prior statements.

Vertical Analysis

An analysis that compares each item in a current statement with a total amount within the same statement.

Percentage Analysis

A financial analysis technique that expresses each item in a financial statement as a percentage of a base amount.