If a Corporation Is Thinly Capitalized, All Debt Is Reclassified

question 68

True/False

If a corporation is thinly capitalized, all debt is reclassified as equity.

---

Definitions:

Classical Illusionism

An artistic technique that uses perspective and other realistic strategies to create the illusion of three-dimensional space on a two-dimensional surface.

Ebbo Gospels

An early medieval illuminated Gospel book known for its unique and expressive Carolingian art style.

Northern Linear Tradition

A style of artistic representation characterized by the use of straight lines and clear, precise contours, commonly found in the art of northern Europe.

Carolingian Empire

A large Frankish-dominated empire in Western and Central Europe during the early medieval period, founded by Charlemagne in 800 AD.