Internal Control Over Bonds Payable Is Best When

question 19

Multiple Choice

Internal control over bonds payable is best when:

• A)The company utilizes the services of a bond trustee.
• B)The company segregates approval from issuance of the bonds.
• C)Bonds are countersigned by two officers.
• D)Bonds are serially numbered.

---

Definitions:

Gross Margin Percentage

A financial metric that measures a company's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold (COGS).

Return On Equity

A financial ratio indicating the profitability of a firm in relation to its shareholders' equity, measuring how much profit is generated from the equity.

Return On Equity

calculates the amount of net income returned as a percentage of shareholders equity, measuring a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Common Stock

A form of equity security signifying an ownership stake in a company, granting the holder the right to participate in voting on corporate issues and to earn dividends.