Which of the Following Is Not Correct

question 165

Multiple Choice

Which of the following is not correct?

• A)If you buy a bond from a corporation,you can sell the bond to someone else before it matures.
• B)Term refers to the scheduling of periodic interest rate payments on a bond.
• C)A bond is an IOU.
• D)There are millions of different bonds in the U.S.economy.

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Definitions:

Purchase Discounts

Reductions in the amount owed by a buyer to a seller for goods purchased, typically gained by paying early or within a specified period.

Freight Costs

Expenses incurred by a company to transport goods, included in the cost of goods sold or recorded as an expense depending on the terms of delivery.

Merchandise

Merchandise refers to the goods that are bought and sold within a retail or wholesale environment.

Cash Discount

A reduction in the invoice price given by the seller to the buyer for quick payment within a specified period.