Finra Exam Series-7 Topic 4 Question 85 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 85
Topic #: 4

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 Lazaro at Apr 19, 2024, 08:00 PM

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1 days ago

I disagree, I believe it decreases the net worth of the corporation.

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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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14 days ago

Yes, that's right. It increases the net worth of the corporation.

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15 days ago

So the correct answer would be A)

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16 days ago

It increases.

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17 days ago

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

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