Which One of the Following Statements Is NOT True

question 66

Multiple Choice

Which one of the following statements is NOT true?

• A) Prices in the corporate bond market tend to be more volatile than the markets for stocks or money market securities.
• B) Corporate bonds are more marketable than the securities that have higher daily trading volumes.
• C) The market for corporate bonds is thin compared to the market for corporate stocks.
• D) The largest investors in corporate bonds are life insurance companies and pension funds.

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Definitions:

Legal Entities

Organizations that have legal rights and obligations, including the ability to enter into contracts and own assets.

Separate Accounting Entity

A fundamental accounting principle that treats a company's financial reports as distinct from those of its owners or other businesses.

Audit

A systematic examination of books, accounts, documents, and vouchers of an organization to ascertain how far the financial statements present a true and fair view.