Which of the following is not a disadvantage of raising capital through the issue of bonds payable?

Question

Quizplus · Accepted Answer

This statement is not a disadvantage but rather an advantage of issuing bonds payable. Deductible interest expenses can reduce the taxable income of a firm, thereby reducing its tax obligation. The other options are potential disadvantages of issuing bonds, such as the long-term liability classification, the obligation to pay interest regardless of profitability, and the repayment of the face amount at maturity.

Which of the Following Is Not a Disadvantage of Raising