Finra Exam Series-7 Topic 1 Question 83 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 83
Topic #: 1

When a corporation issues a nonconvertible debenture, what is the effect upon its net worth?

Ait increases

Bif decreases

Cif is unchanged

Dnone of the above

Show Suggested Answer

Suggested Answer: C

it is unchanged. The debentures add to liabilities and to cash (an asset) received from the sale. There is no effect on net worth.

by Alisha at Mar 15, 2024, 05:56 AM

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1 days ago

I disagree with Glendora. I believe issuing a nonconvertible debenture actually decreases net worth.

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2 days ago

I think when a corporation issues a nonconvertible debenture, it increases its net worth.

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