Multiple Choice
Which of the following arguments is presented by FASB to explain why a gain is recorded by a company when its creditworthiness is becoming worse?
A) The shareholders' loss is the debtholders' gain.
B) The income of the company will increase as the amount of interest payment will reduce.
C) The decrease in market rate will increase the value of equity shares.
D) The debtholders' loss is the shareholders' gain.
Correct Answer:
Verified
Correct Answer:
Verified
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