10 Questions
Match the following financial assets with their description:
Bond = Entitles the owner to the principle and interest specified Equity/Stock = Entitles the owner to dividends from the issuing company Debt = A liability for the company and a financial asset for the investor Equity = A share of ownership of the company and a financial asset for the owner
Match the following terms with their definitions:
Debt = When a company has borrowed money Equity = A share of ownership of the company Financial Instruments = Pieces of paper that are a claim on the issuing company Securities = Another term used to refer to financial assets
Match the following descriptions with the correct term:
Liability for the company and financial asset for the investor holding it = Debt Piece of paper entitling owner to dividends from issuing company = Equity/Stock Claim on the company issuing it, entitling owner to principle and interest = Bond Another term for financial assets issued by companies = Securities
Match the following terms with their role in finance:
Bond = Entitles owner to interest payments Equity/Stock = Represents ownership in a company Debt = Represents borrowed money for a company Financial Assets = Claims on companies issuing them
Match the following concepts with their characteristics:
Equity/Stock = Provides ownership stake in a company Liability for company, financial asset for holder = Debt Claim on issuing company, entitles to principle and interest = Bond Share of ownership, financial asset for owner = Equity
What does a bond entitle the owner to?
Principle and interest specified on the bond
Which term refers to a share of ownership of a company?
Equity
What is the main difference between Debt and Equity?
Equity entitles the owner to dividends, debt does not
How are financial assets sometimes collectively referred to?
Securities
For an investor, what does holding debt represent?
A liability
Test your knowledge of financial assets such as bonds and stocks, and understand the difference between debt and equity in company finance. Explore the concept of financial instruments and securities.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free