Which Statement Is Not True

question 51

Multiple Choice

Which statement is not true?

• A)Not all obligations that become due and will be paid within the next accounting period are classified as current liabilities.
• B)The components of working capital are disclosed on the balance sheet.
• C)An increasing current ratio could result from decreasing liquidity.
• D)An operating cycle is the average time taken by a company to convert receivables back into cash.

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Definitions:

College Students

Individuals enrolled in institutions of higher education, including universities and colleges, to pursue undergraduate or graduate degrees.

Emerging Adulthood

A phase of the life span between adolescence and full-fledged adulthood that encompasses late teens through the twenties, marked by exploration of identity.

Adolescence

A developmental phase following childhood, marked by physical, psychological, and social changes leading to adulthood.

Next Step

The subsequent phase or action in a process, often considered in planning or strategy development.