Which of the Following Is Not a Correct Statement

question 238

Multiple Choice

Which of the following is not a correct statement?

• A) Companies can issue shares and issue bonds.
• B) The government issues bonds but does not issue shares.
• C) Bondholders earn dividends but shareholders don't.
• D) Shareholders earn dividends but bondholders don't.

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Definitions:

Amortized

The process of spreading the cost of an intangible asset over its useful life, or the reduction of debt through regular payments of principal and interest over a set period.

Accumulated Amortization

The total amount of amortization expense that has been applied to intangible assets over time, reducing their book value on the balance sheet.

Intangible Assets

Assets that lack physical substance but have economic value due to rights, privileges, or advantages they confer to the business, such as patents, trademarks, and copyrights.

Amortized

The process of gradually reducing debt through regular payments over a set period, covering both the principal and interest.