Multiple Choice
Which of the following is false regarding the issue of stock versus the issue of bonds to raise capital?
A) The payment of dividends is at the discretion of the board of directors.
B) The payment of interest on bonds payable is required by law.
C) Interest accrues,whereas dividends do not accrue.
D) The declaration of dividends reduces the amount of income taxes the corporation must pay.
Correct Answer:
Verified
Correct Answer:
Verified
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