Which of the Following Statements Is FALSE

question 79

Multiple Choice

Which of the following statements is FALSE?

• A)The bond's expected return,which is equal to the firm's debt cost of capital,is less than the yield to maturity if there is a risk of default.
• B)The two best-known bond-rating companies are Standard & Poor's and Dow Jones.
• C)Bonds in the bottom five categories are often called speculative bonds,junk bonds,or high-yield bonds.
• D)Bond ratings encourage widespread investor participation and relatively liquid markets.

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Definitions:

Perpetual Inventory System

An inventory management system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Consignee

The person or company that receives goods for sale, storage, or shipment on behalf of another, holding goods without taking ownership.

FOB Destination

A shipping term where the seller is responsible for the delivery of goods to a specific destination, absorbing all costs and risks until the goods are received by the buyer.

Perpetual Inventory System

A method of inventory management where updates to inventory records are made continuously as transactions occur.