Standard and Poor's Has Evaluated Syntex Corporation's New Issue of Bonds

question 119

Multiple Choice

Standard and Poor's has evaluated Syntex Corporation's new issue of bonds as BB+. This is an example of which of the following?

• A) leverage rating
• B) capital rating
• C) quality analysis
• D) bond rating

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Definitions:

Note Receivable

A written promise for the payment of a specified amount of money at a set time to the holder or bearer of the note.

Accounts Receivable

Represents money owed to a business by its customers for goods or services delivered but not yet paid for, considered a current asset on the balance sheet.

Notes Payable

A liability account that represents amounts owed on written promises to pay a specific sum of money at a future date.

Formal Promise

An official commitment or assurance, often in writing, to perform a specified action or uphold a certain condition.