Which of the Following Statements About Financial Markets and Securities

question 82

Multiple Choice

Which of the following statements about financial markets and securities are true?

• A) A bond is a long-term security that promises to make periodic payments called dividends to the firm's residual claimants.
• B) A debt instrument is intermediate term if its maturity is less than one year.
• C) A debt instrument is long term if its maturity is ten years or longer.
• D) The maturity of a debt instrument is the time (term) that has elapsed since it was issued.

Understand the significance of non-cash transactions and their reflection in financial statements.

Apply ratio analysis to evaluate firm's leverage and its effects on financial performance.

Understand the use of ratio analysis in comparing firm's performance over time and against competitors.

Recognize the importance of asking the right questions when analyzing ratios to assess financial health and trends.

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Definitions:

John Maynard Keynes

A British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, usually measured by GDP.

Private Sector

The part of the economy that is owned and operated by individuals and private companies, as opposed to being controlled by the government.

The Global Sullivan Principles

A set of ethical guidelines designed to promote corporate social responsibility, originally focused on human rights and equality in the workplace.