Which of the Following Statements Is Correct

question 48

Multiple Choice

Which of the following statements is correct?

• A) A bank bill is a negotiable instrument.
• B) A bank-accepted bill is regarded by market participants as equivalent to a bank-endorsed bill.
• C) The issuer of the bank-accepted bill will repay the holder of the bill directly at maturity.
• D) The issuer of a bank-endorsed bill has to pay regular interest payments to the holder, unlike with a bank-accepted bill.

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Definitions:

Intangibles

Assets that do not have physical substance but are still valuable because of their intellectual property or other value to the firm.

Expensed

The act of charging a cost as an expense in the income statement in the period it is incurred.

Capitalized

Expenditures or costs that are added to the cost basis of a fixed asset on a company's balance sheet, rather than being expensed immediately.

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair value of its net identifiable assets.