Finance Objective Questions - Company's Real Activities and is Cost of Detb better than Cost of Equity


1. Which of the following liabilities form part of a company's "real" activities? 

  1. Short-term debt
  2. Accounts payable
  3. Accrued operating expenses
  4. Long-term debt
  5. III only II and III I and IV I only

2. The cost of debt is generally lower than the cost of equity.

True or False


These two objective questions belong to Finance and the first question is what liabilities form company’s real activities and the second question is whether or not cost of debt is lower than cost of equity.

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