Bonds with Ratings of BB and Below Are Classified as Speculative

question 30

True/False

Bonds with ratings of BB and below are classified as speculative, or so-called junk, bonds.

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Definitions:

Withdrawals

Funds or resources withdrawn from a business by its owners for individual purposes.

Salaries

Payments made to employees for their services over a specified period.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue; also known as the bottom line.

Income and Losses

Represents the financial performance of a business, where income refers to the earnings and losses indicate the expenses exceeding earnings over a period.