Exam preparation MCQs with answers

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Which of the following statement is TRUE regarding debt?
  • (A)  Debt is an ownership interest in the firm.
  • (B)  Unpaid debt can result in bankruptcy or financial failure.
  • (C)  Debt provides the voting rights to the bondholders.
  • (D)  Corporation’s payment of interest on debt is fully taxabl
Which of the following statement about bond ratings is TRUE?
  • (A)  Bond ratings are typically paid for by a company’s bondholders.
  • (B)  Bond ratings are based solely on information acquired from sources other than the bond issuer.
  • (C)  Bond ratings represent an independent assessment of the credit-worthiness of bonds.
  • (D)  None of the given options
An Asset is __________?
  • (A)  Sources of funds
  • (B)  Use of funds
  • (C)  Inflow of funds
  • (D)  None of these