Which of the Following Are More Likely to Break the Law

question 154

Multiple Choice

Which of the following are more likely to break the law?

• A)Companies that are experiencing a downturn in sales
• B)Companies that have had 7 consecutive quarters of losses
• C)Companies that are high earnings performers
• D)Companies that have just had a rapid changeover in leadership

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Definitions:

Liabilities

Financial obligations or debts owed by a business to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Debits

Accounting entries that increase asset or expense accounts, or decrease liability, equity, or revenue accounts.

Credits

In accounting, credits are entries that decrease assets or increase liabilities and equity on a company's balance sheet.

Bank Balance

The amount of money held in a bank account at a given moment.