A Promissory Note Issued by a Corporation When It Borrows

question 122

Multiple Choice

A promissory note issued by a corporation when it borrows money is a

• A) share.
• B) corporate bond.
• C) corporate dividend.
• D) stock.

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Definitions:

Diluted Earnings

Earnings per share calculated under the assumption that all convertible securities have been converted into common stock, providing a "worst case" scenario perspective on earnings per share.

Ownership Perspective

An approach or mindset focusing on the long-term benefits and responsibilities of owning an asset or investment.

GAAP

Generally Accepted Accounting Principles, a framework of accounting standards, principles, and procedures from which financial statements are prepared in the United States.

Cumulative

Pertaining to an aggregate or total amount added up over time, often used in context with dividends that are accumulated if not paid out.