Corporations in the U.S.tend to

question 18

Multiple Choice

Corporations in the U.S.tend to

• A)have extremely high debt-equity ratios.
• B)rely less on equity financing than they should.
• C)minimize taxes.
• D)underutilize debt.
• E)rely more heavily on bonds than stocks as the major source of financing.

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Definitions:

Deferral Method

An accounting practice that involves postponing the recognition of certain income or expenses until a later accounting period, typically to match revenue with expenses more effectively.

Donation Revenue

Income received from gifts or donations, often characterized by the absence of an expected return or direct benefit to the donor.

Restricted Contribution

Funds given to an organization with stipulations on their use, requiring the organization to apply them to a specified project or purpose.

Specific Project

A distinct endeavor with set objectives, timeline, and resources allocated for completion.