Which of the Following Statements Regarding Bonds Payable Is True

question 108

Multiple Choice

Which of the following statements regarding bonds payable is true?

• A)Generally,bonds are issued in denominations of $100.
• B)When an issuing company's bonds are traded in the "secondary" market,the company will receive part of the proceeds when the bonds are sold from the first purchaser to the second purchaser.
• C)A debenture bond is backed by specific assets of the issuing company.
• D)Most bonds are term bonds,meaning that the entire principal amount will mature on a single date.

---

Definitions:

Initial Steps

The preliminary actions or procedures that are taken at the beginning of a process or project.

Lawsuit

A legal dispute brought before a court where one party seeks to obtain a resolution or damages from another.

Federal Arbitration Act

A U.S. federal law enacted in 1925 that provides for contractual agreements to arbitrate disputes rather than litigate them in courts.

Arbitration Agreements

Legal contracts that require parties to resolve disputes through arbitration rather than litigation.