Which of the Following Is Correct

question 170

Multiple Choice

Which of the following is correct?

• A)Some bonds have terms as short as a few months.
• B)Because they are so risky,junk bonds pay a low rate of interest.
• C)Corporations buy bonds to raise funds.
• D)All of the above are correct.

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Definitions:

Operating Expenses

Expenses that are incurred during the normal operation of a business, including costs like rent, utilities, and salaries.

Sales Revenues Section

This section of an income statement accounts for the total income generated by the sale of goods or services before any costs or expenses are deducted.

Sales Discounts

Reductions to the selling price of goods or services that encourage customers to pay promptly.

Sales Returns and Allowances

Deductions from a company's sales revenue for returned merchandise or allowances given for damaged goods.