Which of the Following Statements Is False

question 35

Multiple Choice

Which of the following statements is false?

• A)Creditors do not have voting power.
• B)Payment on interest on debt in considered an expense,while payment of dividends is a return on capital.
• C)Unpaid debt is a liability of the firm,and if not paid,can result in liquidation of the firm.Unpaid ordinary equity dividends cannot force liquidation.
• D)One of the costs of issuing equity is the possibility of financial distress,while no financial distress is associated with debt.
• E)None of the above.

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Definitions:

Joint Mobility

The range of uninhibited movement around a joint or body part.

Circumduction

The circular movement of a limb or eye where the end follows a circular path.

Central Axis

The core line running through an object or body, around which it is symmetrically arranged.

Rebound Tenderness

A clinical sign indicative of peritonitis, where pain is felt upon the quick release of deep pressure from the abdomen.