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Home Q & A Board Other Fields Homework Help Business Accounting
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H3Ko H3Ko
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7 years ago
Why would a corporation issue bonds payable instead of issuing stock?
A) Debt does not have to be shown on the balance sheet.
B) Debt affects the percentage of ownership of the corporation by the stockholders.
C) Debt is a less expensive source of capital than stock.
D) Borrowing by issuing bonds payable carries no risk to the company.
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
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7 years ago
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H3Ko Author
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7 years ago
YES! Can't believe I got this one right. Appreciate the confirmation
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