Which One of the Following Statements Related to Financial Information

question 88

Multiple Choice

Which one of the following statements related to financial information is not true?

• A)Liquidity refers to the company's ability to change the amounts and timing of cash flows to adapt to unexpected needs and opportunities.
• B)In general, the higher the risk of an investment, the higher the return on investment expected by investors.
• C)Return on capital can be provided only after return of capital.
• D)Operating capability describes the company's ability to maintain a given level of operations.

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Definitions:

Structures

The arrangement or organization of parts to form a whole, often referring to the molecular geometry or architecture in chemistry.

Nitrate Ester

An organic compound containing a nitrate group bonded to an oxygen atom of an alcohol, often used in explosives and propellants.

Energetic Material

Substances that release energy rapidly when triggered, used in explosives, propellants, and pyrotechnics.

Nitroglycerin

A volatile compound used as an explosive and in medicine as a vasodilator to treat heart conditions.