76.

How can a business that issues bonds protect itself if the market conditions lead to falling interest rates?

Issue callable bonds

Issue unsecured bonds

Issue bearer bonds

Issue registered bonds

77.

Why might a company want to repurchase some of it own shares of stock?

• The company's stock is overvalued, and the company would like to reissue the stock after a market correction.
• The company no longer wants to pay out dividends to its shareholders.
• It may be trying to avoid a takeover by another company.
• There are no new growth opportunities in sight, and the company doesn't want to share ownership without a good reason.

78.

Ownership of this type of stock gives you priority over other shareholders in terms of dividends and other distributions made to shareholders.

• contributed stock
• treasury stock
• common stock
• preferred stock

79.

_____ means that products or services have been exchanged for cash; _____ means that products or services have been exchanged, but payment is expected to be received at a later date; and, _____ means that services have been performed or goods have been exchanged.

• realized; realizable; earned
• earned; realized; realizable
• realizable; realized; earned
• realized; earned; realizable

80.

A company that has used cash in operating activities could indicate all of the following EXCEPT:

• The company has recently purchased a large amount of inventory that it intends to resell.
• None of the answers are correct.
• The company has paid an outstanding balance on an account owed to its suppliers or its employees.
• The company is efficient in collecting outstanding amounts from its customers.