Debt Contracts Will

Debt contracts will:

A) Stipulate in advance all accounting methods to be used by managers.
B) Ensure management has some discretionary ability to loosen restrictions negotiated by debt-holders.
C) Encourage the practice of claim dilution to ensure debts are repaid.
D) Not require published accounting reports to be adjusted when calculating debt covenants.
E) Occasionally restrict accounting techniques used by a firm.