A Company Would Be Considered to Have a Complex Capital

question 72

Multiple Choice

A company would be considered to have a complex capital structure if it had

• A) long-term notes payable.
• B) preferred stock.
• C) convertible bonds.
• D) restricted retained earnings.

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Definitions:

FOB Shipping Point

A term used in shipping agreements indicating that the buyer takes ownership and responsibility for goods once they are shipped, and is responsible for freight costs and risks.

Accounts Receivable

Outstanding balances due to a company from its clients for products or services rendered but still unpaid.

FOB Shipping Point

A shipping term indicating that the buyer assumes responsibility for the goods and the shipping costs from the point of departure.

Freight Costs

Expenses incurred by a company for transporting goods from one place to another.