Which of the Following Is Not an Accurate Statement Regarding

Multiple Choice

Which of the following is not an accurate statement regarding the distinction between debt and equity?

A) Only equity is considered a source of financing for operations of the business,since debt must be repaid at a specified maturity date.
B) If a business ceases operations and liquidates,claims of all creditors have legal priority over claims of the stockholders.
C) Most debt requires the borrower to pay interest;equity financing does not obligate the company to make a specified payment.
D) The providers of equity are owners of the business;the providers of borrowed funds are creditors.