Which of the Following Statements Is Not Correct

question 13

Multiple Choice

Which of the following statements is not correct?

• A) A bond is a certificate allowing the division of a debt between large numbers of investors,each of whom can contribute only a small amount of the debt.
• B) If the face value of a bond is important,it makes this lending instrument accessible to a large public.
• C) The bond or certificate shows the evidence of the claim held by the bondholder.
• D) In the aggregate the bond issue may represent a very large amount of borrowed funds to cover all or part of the company's financing needs.

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Definitions:

Statement Of Cash Flows

A financial statement that summarizes information about the cash inflows (receipts) and cash outflows (payments) for a specific period of time.

Promissory Note

A financial instrument in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time or on demand.

Credit Card Sales

Transactions where customers use credit cards to purchase goods or services, requiring merchants to process payments through a credit card network.

Direct Write-Off Method

An accounting method where uncollectible debts are charged directly to expense as they are identified.