Which Statement Needs the Most Revision

question 17

Multiple Choice

Which statement needs the most revision?

• A) Many managers react to legislation by changing their behavior to avoid legal trouble.
• B) Organizations must often pay for new programs enacted by Congress.
• C) Consumers and members of the public are paying for improvements mandated by Congress.
• D) The expenses added to the cost of doing business are relatively minor.

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Definitions:

Unearned Revenue

Income received by an entity for services or products yet to be delivered or performed.

Liabilities

Liabilities or amounts due by a corporation to third parties or people outside the organization.

Accrued Expense

An accounting term referring to expenses that have been incurred but not yet paid, representing liabilities on a company's balance sheet.

Income Taxes

Taxes levied by the government on income generated by businesses and individuals within their jurisdiction.