Which Statement Is Correct About Debt Instruments

question 123

Multiple Choice

Which statement is correct about debt instruments?

• A)A contract whose value changes according to a specified variable.
• B)A contract that gives the holder the residual interest in an entity.
• C)A contract that gives the holder joint interest in an entity.
• D)A contract that is not an equity instrument or a derivative.

---

Definitions:

Rhizoids

Thread-like structures that anchor nonvascular plants like mosses and liverworts to their substrates, but do not absorb nutrients like true roots.

Cotyledons

Embryonic leaf in seed-bearing plants, the first to appear from a germinating seed.

Ovule

In seed plants, a structure that contains the female gametophyte and has the potential to develop into a seed.

Seed

The reproductive unit of a flowering plant, capable of developing into another such plant.