Which of the Following Statements Is False

question 112

Multiple Choice

Which of the following statements is false?

• A) Revenues increase stockholders' equity.
• B) Revenues have normal credit balances.
• C) Revenues are a positive factor in the computation of net income.
• D) Revenues are increased by debits.

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Definitions:

Acid-Test Ratio

A financial metric comparing a company's most liquid assets (excluding inventory) to its current liabilities, used to assess short-term solvency.

Marketable Securities

These are liquid financial instruments that can easily be converted into cash at their current value in the financial markets.

Selling And Administrative Expenses

Expenses related to the selling of products and the management of the business, not directly tied to manufacturing.

Noncurrent Assets

Noncurrent assets are long-term assets not expected to be converted into cash or used up within one year, such as property, plant, and equipment.