Which One of the Following Statements Is Correct

question 79

Multiple Choice

Which one of the following statements is correct?

• A) Stock is a form of debt capital.
• B) Stock must be repaid at maturity.
• C) Bonds are a form of debt capital.
• D) Bonds do not have to be repaid at maturity.
• E) Interest payments to bondholders must be declared by the board of directors.

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Definitions:

Average Sale Period

An efficiency ratio that indicates the average number of days it takes for a company to convert its inventory into sales.

Inventory Turnover

A ratio showing how many times a company has sold and replaced inventory over a given period, indicating efficiency in inventory management.

Equity Multiplier

A financial ratio that measures a company's leverage by dividing total assets by total shareholders' equity.

Year 2

Refers to the second year in a given context, often used in financial and performance analysis.