If Bonds and Stocks Are Considered to Be Substitute Goods,and

question 47

Multiple Choice

If bonds and stocks are considered to be substitute goods,and the investors expect stock prices to drop in recent future:

• A)the price of bonds will also decline.
• B)the supply of bond will increase.
• C)the interest rate on bonds will decline.
• D)the demand for stocks will increase.
• E)the demand for bonds will decline.

Comprehend the concepts of income and expense recognition under IFRS and GAAP.

Gain proficiency in preparing financial statements from adjusted trial balances.

Understand the concept of cash-basis and accrual-basis accounting.

Appreciate the importance and methods of depreciation and its impact on financial statements.

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Definitions:

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