The financing option that creates no liabilities or interest expense is financing by:
A)issuing notes payable.
B)debt.
C)issuing stock.
D)issuing bonds payable.

Question

Quizplus · Accepted Answer

Financing by issuing stock creates no liabilities or interest expense as it involves selling ownership in the company to investors in exchange for equity. This type of financing is often preferred by companies that do not want to take on additional debt and are willing to dilute their ownership in order to raise funds. Issuing notes payable, debt, and bonds payable all involve taking on some form of liability and interest expense.

The Financing Option That Creates No Liabilities or Interest Expense