A Feature That Allows Bondholders to Change Each Bond into a Stated

question 3

Multiple Choice

A feature that allows bondholders to change each bond into a stated number of shares of common stock is called

• A) stock purchase warrants.
• B) call feature.
• C) conversion feature.
• D) none of the above.

---

Definitions:

Merchandise Inventory

Goods that a retailer, wholesaler, or distributor holds for the purpose of selling to customers in the normal course of business.

Perpetual Inventory System

A method of accounting for inventory that records real-time transactions of goods as they come in and out of stock, thus maintaining a continuously updated inventory balance.

Periodic System

A method of inventory valuation for financial statements where purchases during the period are recorded directly to an inventory account and the cost of goods sold is determined at the end of the accounting period.