Which Type of Bond Is Currently Prohibited from Being Issued

question 197

Multiple Choice

Which type of bond is currently prohibited from being issued in the United States?

• A) bearer bonds
• B) unregulated debentures
• C) tax avoidance bonds
• D) income bonds

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Definitions:

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares rather than cash.

Market Price

The current price at which an asset or service can be bought or sold in a particular market.

Prior Period Adjustment

An accounting entry made to correct errors that were made in previous financial reporting periods.

Amortization Expense

The process of gradually writing off the initial cost of an intangible asset over its useful life.