So-Called Fallen Angels Differ from Junk Bonds in That

question 59

Multiple Choice

So-called fallen angels differ from junk bonds in that

• A) junk bonds refer to previously issued bonds which have had their credit ratings fall below Baa.
• B) fallen angels refer to newly issued bonds with low credit ratings.
• C) junk bonds refer to newly issued bonds with low credit ratings.
• D) they are both A and B of the above.

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Definitions:

General Journal

An accounting journal where all types of transactions are initially recorded, before being posted to specific accounts in the ledger.

Accounting System

A systematic process used by entities to track financial transactions and summarize financial data.

Cost Effectiveness

An assessment that compares the relative costs and outcomes (effects) of different courses of action.

Useful Information

Data or facts that are relevant and beneficial to decision-making processes, ensuring accuracy and timeliness.