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Finra Exam Series-7 Topic 1 Question 83 Discussion

Actual exam question for Finra's Series-7 exam
Question #: 83
Topic #: 1
[All Series-7 Questions]

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

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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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Matilda
11 months ago
Candidate 2: I think the debenture represents a liability for the corporation, causing a decrease in net worth.
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Fernanda
12 months ago
Candidate 1: Can someone provide a rationale for their answer?
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Maybelle
12 months ago
Candidate 4: I'm not sure about this, but I think none of the above options are correct.
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Laurel
12 months ago
Candidate 3: I think the net worth remains unchanged when a corporation issues a nonconvertible debenture.
upvoted 0 times
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Dominque
1 years ago
Candidate 2: I disagree, I believe it decreases the net worth of the corporation.
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Raymon
1 years ago
Candidate 1: I think when a corporation issues a nonconvertible debenture, it increases its net worth.
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Markus
1 years ago
I think the correct answer is C) it is unchanged because a nonconvertible debenture doesn't impact net worth directly.
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Darrel
1 years ago
I see both perspectives. It really depends on the specific circumstances of the corporation.
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Natalie
1 years ago
I disagree with Glendora. I believe issuing a nonconvertible debenture actually decreases net worth.
upvoted 0 times
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Glendora
1 years ago
I think when a corporation issues a nonconvertible debenture, it increases its net worth.
upvoted 0 times
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