Which of the Following Is Incorrect

question 21

Multiple Choice

Which of the following is incorrect?

• A)Current liabilities are those that will be satisfied within one year or the operating cycle, whichever is longer.
• B)Liquidity is the ability of the company to meet its total obligations.
• C)Current liabilities impact a company's liquidity.
• D)Working capital is equal to current assets minus current liabilities.

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Definitions:

Restatement Second Torts

A set of model legal doctrines in the field of tort law, intended to clarify, modernize, and otherwise improve tort law, published by the American Law Institute.

Possessor of Land

Refers to an individual or entity that occupies land or property, regardless of whether they have legal ownership of it.

Invitees

Individuals who are invited to enter or remain on premises for commercial benefit to the inviter or for a purpose directly related to the business.

Comparative Negligence

Comparative Negligence is a legal principle that reduces the plaintiff's damages award according to the plaintiff's degree of fault for the accident.