To obtain large amounts of long-term capital, corporations can
A)convert current liabilities to current assets.
B)issue bonds or sell common shares.
C)convert unearned revenues to earned revenues.
D)redeem bonds.

Question

Quizplus · Accepted Answer

Issuing bonds or selling common shares are common methods for corporations to obtain large amounts of long-term capital. Converting current liabilities to current assets or converting unearned revenues to earned revenues do not result in an increase in capital, and redeeming bonds is a way to pay off debt rather than obtain capital.

To Obtain Large Amounts of Long-Term Capital, Corporations Can