There are many definitions or descriptions given to financial failure.Which of the following does not appear to be a reasonable definition or description:
A)refinancing of bonds payable.
B)liquidation.
C)deferment of payments to short-term creditors.
D)deferment of payments of interest on bonds.
E)deferment of payments of principal on bonds.

Question

Quizplus · Accepted Answer

Refinancing of bonds payable does not necessarily indicate financial failure. In fact, it could be a strategic move to improve cash flow and reduce interest expenses. The other options all involve delayed or missed payments, which can be a sign of financial distress.

There Are Many Definitions or Descriptions Given to Financial Failure