In General,interest on Bonds,like Dividends on Preferred Stock,may Be Deferred

question 129

True/False

In general,interest on bonds,like dividends on preferred stock,may be deferred until a later date at the discretion of management,making debt financing more appealing to corporate managers.

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Definitions:

Control Activity

Measures implemented to ensure that management's directives are carried out, aiming to prevent, detect, and correct financial misstatements or fraud.

Extensive Marketing Plan

A comprehensive strategy outlining marketing efforts, targeting how a business will effectively engage customers, compete in the market, and achieve its marketing goals.

Segregation Of Duties

An internal control method used to prevent fraud and errors, which involves dividing tasks and responsibilities among different people to ensure no single individual controls all aspects of a transaction.

Internal Controls

Mechanisms, rules, and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.