Which of the following is true of the comparison between equity securities and debt securities?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Which of the following is true of the comparison between equity securities and debt securities?
Debt securities represent stock ownership in a company whereas equity securities represent a credit relationship with the company.
Neither debt securities nor equity securities mature at a stated date.
Equity securities may earn dividend revenue whereas debt securities earn interest revenue.
Both debt securities and equity securities pay interest.
Transcribed Image Text:Which of the following is true of the comparison between equity securities and debt securities? Debt securities represent stock ownership in a company whereas equity securities represent a credit relationship with the company. Neither debt securities nor equity securities mature at a stated date. Equity securities may earn dividend revenue whereas debt securities earn interest revenue. Both debt securities and equity securities pay interest.
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