When a corporation issues a nonconvertible debenture, what is the effect upon its net worth?
A)it increases
B)if decreases
C)if is unchanged
D)none of the above

Name: When a corporation issues a nonconvertible debenture, what is the effect upon its net worth? A)it increases B)if decreases C)if is unchanged D)none of the above
Brand: Quizplus
Rating: 4.8 (33 reviews)

Question

Quizplus · Accepted Answer

it is unchanged. The debentures add to liabilities and to cash (an asset) received from the sale. There is no effect on net worth.

When a Corporation Issues a Nonconvertible Debenture, What Is the Effect