The balance sheet of BYA Corporation reported bonds payable with a book value of $500,000 and total paid-in capital of $300,000. The balance sheet of LCA Corporation reported bonds payable with a book value of $600,000 and total paid-in capital of $250,000. Which of the following statements is most true?
A) BYA's exposure to liquidity risk is greater than LCA's exposure.
B) BYA's exposure to liquidity risk is less than LCA's exposure.
C) BYA and LCA have equal exposure to liquidity risk.
D) None of the above statements is true.
Correct Answer:
Verified
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