Which of the Following Statements Is FALSE

question 89

Multiple Choice

Which of the following statements is FALSE?

• A)The amount of each coupon payment is determined by the coupon rate of the bond.
• B)Prior to its maturity date,the price of a zero-coupon bond is always greater than its face value.
• C)The simplest type of bond is a zero-coupon bond.
• D)Treasury bills are U.S.government bonds with a maturity of up to one year.

---

Definitions:

Employee Salaries

The regular compensation paid to employees for their labor or services, typically expressed as an annual amount or hourly wage.

Activity Variance

The difference between the actual cost incurred for an activity and the standard cost set for that same activity.

Total Expenses

The sum of all costs and expenditures that a business incurs during a given period, including operating expenses, cost of goods sold, and other charges.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as materials and labor.