Although a corporation has no earnings in a particular year, it is obligated to pay interest on all its outstanding debt except the following:
A)convertible subordinated debentures
B)collateral trust bonds
C)adjustment bonds
D)equipment trust certificates

Question

Quizplus · Accepted Answer

adjustment bonds. These bonds are also known as income bonds. Interest is paid only if there is income.

Although a Corporation Has No Earnings in a Particular Year