Which of the Following Statements Is Incorrect

question 35

Multiple Choice

Which of the following statements is incorrect?

• A) In a short sale, investors place an order to sell a stock that they do not own.
• B) Investors sell a stock short when they anticipate that its price will rise.
• C) When investors sell short, they will ultimately have to provide the stock back to the investor from whom they borrowed it.
• D) Short-sellers must make payments to the investor from whom the stock was borrowed to cover the dividend payments that the investor would have received of the stock had not been borrowed.

Acquire the ability to calculate net income from given accounting information.

Knowledge of the process for recording transactions in journals and ledgers.

Understand the purpose and structure of a trial balance and its role in the accounting process.

Recognize the common errors in accounting entries and their impact on financial statements.

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Definitions:

Punishment

A consequence applied to an individual or animal in response to an undesirable behavior, with the intent of decreasing or eliminating that behavior.

Instinctive Drift

Tendency for an animal’s behavior to revert to genetically controlled patterns.

Genetic Blueprint

A metaphor for the complete set of genes that an organism inherited, which determines its biological characteristics and development.

Maturation

The process of becoming mature; encompasses the physical, mental, and emotional developments that occur as a person ages.