Bond Ratings Use a Classification System to Give Investors an Idea

question 22

True/False

Bond ratings use a classification system to give investors an idea of the amount of default rate risk associated with the bond issue.

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Definitions:

Net Income

The company's overall earnings following the deduction of all expenses and taxes from its total revenue.

Statement Of Owner's Equity

A report that summarizes the fluctuation in the equity of a business due to profits earned, dividends paid, and capital invested during a specific period.

Income Statement

A financial statement that shows the company's revenues and expenses over a specific period, culminating in the net income or loss for that period.

Statement Of Owner's Equity

A financial document showing the changes in the equity portion of a company's balance sheet, including investments by and distributions to owners.