The maximum reward for owning a debt security is Blank______, and the maximum reward for owning equity is Blank______.  Multiple choice question. fixed, fixed unlimited, fixed fixed, unlimited unlimited, unlimited

Which of the following will cause owner's capital to decrease?Select one:a. Capitalb. Profitc. Drawingsd. Liability

Multiple ChoiceIdentify the choice that best completes the statement or answers the question.      9.  For a liability to exist, a. a past transaction or event must have occurred. b. the exact amount must be known. c. the identity of the party owed must be known. d. an obligation to pay cash in the future must exist.      10.  The effective interest rate on bonds is higher than the stated rate when bonds sell a. at face value. b. above face value. c. below face value. d. at maturity value.      11.  The effective interest rate on bonds is lower than the stated rate when bonds sell a. at maturity value. b. above face value. c. below face value. d. at face value.      12.  When interest expense is calculated using the effective-interest amortization method, interest expense (assuming that interest is paid annually) always equals the a. actual amount of interest paid. b. book value of the…

The process of accumulating interest on both principal and interest earned is called ________. Multiple Choice   Accumulation.   Compounding.   Investment.   Discounting.   Interesting.

Debt will always have a cost basis that is less than equity. OA. True B. False

According to the fair value principle, assets and liabilities should be reported Select answer from the options below 1.at their fair market value. 2.at their historical cost. 3.at a value agreed upon by interested parties. 4.at cost plus inflation.

A secured line of credit: Select one: a. is backed up by pledged assets b. is not backed up by pledge assets c. has a higher interest rate than an unsecured line of credit d. has a lower limit than an unsecured line of credit

Which of the following is one of the five C's of credit? Select one: O a. all of the options O b. Capacity O c. Character O d. Collateral

Straight debt and equity have very different payoff structures. Debt holders get paid "first", but only up to the amount they are owed. Equity holders get paid "last", but essentially get all the upside after the debtholders' obligation has been satisfied. Group of answer choices True False

_____ is a contract that involves compensation for specific potential future losses in exchange for periodic payments and that provides for the transfer of the risk of a loss, from one entity to another, in exchange for a premium. a.Spot contract b.Insurance c.Hedging d. Forward contract