Which of the Following Statements Is True Regarding a Bond

question 193

Multiple Choice

Which of the following statements is true regarding a bond?

• A)​A bond is a certificate that acts as evidence of ownership in a corporation.
• B)​A bond is a certificate that represents a corporation's promise to repay a certain amount of money and interest in the future.
• C)If you buy a bond from a company,you are borrowing money from the company.
• D)Bondholders receive dividends semiannually.

Understand the concept of a budget sequence and its importance in financial planning.

Analyze and calculate budgeted purchases and payments for direct materials.

Prepare a budgeted income statement based on operating budgets.

Understand the role of ending and beginning inventory levels in production and budgeting.

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Definitions:

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's operating performance.

Interest Charges

Costs incurred by borrowers for the use of borrowed money, typically expressed as an annual percentage rate.

Long-Term Debt

A financial obligation that is due for repayment in more than one year's time.

ROE

Return on Equity (ROE) is a measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.