Which of the Following Statements Is True

question 57

Multiple Choice

Which of the following statements is True?

• A) Interest on bonds is tax deductible.
• B) Interest on bonds is not tax deductible.
• C) Dividends to stockholders are tax deductible.
• D) Bonds do not have to be repaid.
• E) Bonds always increase return on equity.

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Definitions:

Explain

To make something clear or easy to understand by describing or giving information about it.

Case Law

Rules of law announced in court decisions.

U.S. Constitution

The foundational legal document establishing the framework of the federal government and the rights of American citizens.

A Statute

A written law passed by a legislative body at the federal or state level.