Which of the Following Statements Is TRUE About a Debenture

question 67

Multiple Choice

Which of the following statements is TRUE about a debenture that is issued at a discount?

• A)It will be sold for less than the face value.
• B)Its interest rate is higher than the prevailing market rate.
• C)It will be sold at par.
• D)It will repay principal at less than the face value.

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Definitions:

Insignificant Influence

A situation where an investor cannot exert control or significant influence over the investee.

Stock Investments

Financial assets representing ownership in companies, which may yield dividends and have the potential for capital appreciation.

Imports Inventory

Imports inventory refers to goods and materials purchased from other countries for resale or use in production.

Year-End Adjustments

Accounting entries made at the end of an accounting period to update accounts for accurate financial reporting.