Which of the Following Statements About Debt Securities Is True

question 41

Multiple Choice

Which of the following statements about debt securities is true?

• A)They transfer an ownership interest in the corporation.
• B)They do not arise in the form of a debenture.
• C)They arise in the form of notes,debentures,or bonds.
• D)They are generally in the form of stocks and not loans.

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Definitions:

Subsidiary Ledger

A detailed ledger that provides a breakdown of transactions relating to a specific account, which then rolls up into the general ledger.

Usefulness

Usefulness in a business context often refers to the degree to which information or data meets the needs of its users, enabling informed decision-making.

General Journal

A book or electronic record in accounting where transactions are entered before they are posted to individual accounts.

Cash Receipts Journal

A specialized accounting journal used to record all cash inflows or receipts into a business.