Select the correct statement from those listed below:
A)Issuance of bonds and the origination of loans are considered debt, while the issuance of stock is considered equity.
B)Issuance of bonds and the origination of loans are considered debt, while the issuance of stock is considered revenue.
C)Issuance of bonds, the origination of loans, and the issuance of stock are all considered debt.
D)Issuance of bonds, the origination of loans, and the issuance of stock are all considered equity.

Question

Quizplus · Accepted Answer

Issuance of bonds and loans involve borrowing money that must be repaid with interest, which is considered debt. Issuance of stock represents ownership in the company and does not need to be repaid, so it is considered equity.

Select the Correct Statement from Those Listed Below