1. Which of the following is not a reason for the issuance of long-term liabilities? a. Debt financing offers an income tax advantage. b. Ownership interest is diluted. c. Debt may be the only available source of funds. d. Debt financing may have a lower cost.

1. Which of the following is not a reason for the issuance of long-term liabilities? a. Debt financing offers an income tax advantage. b. Ownership interest is diluted. c. Debt may be the only available source of funds. d. Debt financing may have a lower cost.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1. Which of the following is not a reason for the issuance of long-term liabilities?

a. Debt financing offers an income tax advantage.
b. Ownership interest is diluted.
c. Debt may be the only available source of funds.
d. Debt financing may have a lower cost.

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