If a company defaults on its bonds,

Assets equal

A decrease in the cost of an investment will increase its net present value.

Since M‑2 excludes time deposits, M-2 is a less comprehensive measure of the money supply than M‑1.

A decrease in the cost of an investment will increase its net present value.

Since M‑2 excludes time deposits, M-2 is a less comprehensive measure of the money supply than M‑1.

Accounts receivable are adjusted for doubtful accounts (i.e., accounts that may not be paid).

Equipment trust certificates issued by a firm should be safer than its debentures.