statement because it shows that assets equal liabilities plus owner's equity. One can learn if a company's financial health is good or bad from the O A. Independent audit. OB. Annual report. OC. Tax return. OD. Balance sheet. QUESTION 32 What is characteristic of debt financing? A. Interest in non-tax-deductible. B. The company is never required to repay equity. OC. Stock has no maturity date. OD. The principal must be repaid. QUESTION 33 Which best describes an insurance company that invests its own funds? A. Institutional investor. OB. A company that has made capital expenditures. OC. Venture capitalist. OD. A financial event, as classified by accounting. Corporations are not allowed to give loans to its directors and executives. This law is from (choose the best answer): O A. The FASB. OB. The Sarbanes-Oxley Act. OC. The Federal Reserve. OD. Tax accounting. QUESTION 35 If a company owns a copyright, the accounting department will categorize it as what type of asset? (choose the answer that best describes the situation) lol Short-term asset. B. Intangible asset. O C. Current asset. OD. Fixed asset. QUESTION 36 If a company has amassed profits from operating its business, it can reinvest those earnings back into the business. Which of the following best describes a potential benefit as a result of this situation: A. The company may not have to use as much debt financing, and consequently can limit interest payments it might otherwise have had to pay. OB. It may incentivize the company to sell more stock, which in turn, could help the company satisfy its investors who themselves can benefit from dividend payments. OC. This may help the company secure tax-deductible interest on its funds raised from its various forms of borrowing. OD. It may incentivize the company to issue more bonds