Which of the Following Statements Is FALSE

question 52

Multiple Choice

Which of the following statements is FALSE?

• A)A transaction is an exchange or event that has a direct and measurable financial effect.
• B)Every transaction has at least 2 effects.
• C)Current assets are economic resources to be used or turned into cash within one year.
• D)Notes payable is the account debited when money is borrowed from a bank using a promissory note.

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Definitions:

Direct Financing Lease

A lease agreement where the lessor purchases the leased asset specifically for the lease and all financial risks and rewards are transferred to the lessee.

Periodic Rate of Return

The rate at which an investment grows during each accounting period, often utilized to compare the profitability or yield of different investments over a set time frame.

Net Investment

The total amount spent on purchasing fixed assets less any disposals, also considering adjustments for depreciation or impairments.

Unreimbursable Costs

Unreimbursable costs are expenses incurred by a party that cannot be recovered through billing or other forms of payment from clients or customers.