Which of the Following Is Generally NOT a Characteristic of a Bond

question 119

Multiple Choice

Which of the following is generally NOT a characteristic of a bond?

• A)Voting rights
• B)Par value
• C)Claims on assets and income
• D)Indenture

---

Definitions:

Arbitrarily Allocated

The process of distributing amounts in a somewhat random or subjective manner, often used in allocating costs to different departments or projects without a strict formula.

LIFO Inventory

LIFO inventory is a method of inventory valuation where the most recently produced or purchased items are recorded as sold first, potentially reducing taxes in periods of inflation.

Sales Exceed Production

A situation where the demand for a company's products surpasses its current production capacity or available inventory.

Variable Costing

An accounting method that only includes variable costs—costs that vary with production levels—when calculating the cost of producing a good or service.