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:

Liberty League

A political organization founded in 1934 in the United States, advocating for limited government and free enterprise.

Particular Target

A specific objective or item that is singled out for attention or action.

Good Neighbor Policy

A foreign policy of the United States, initiated by President Franklin D. Roosevelt in the 1930s, aimed at strengthening friendly relations and mutual defense with the countries of Latin America.