Which of the Following Is False

question 28

Multiple Choice

Which of the following is false?

• A) A credit transaction leads to a payment from foreigners
• B) A debit transaction leads to a payment to foreigners
• C) A credit transaction is entered with a negative sign
• D) Double-entry bookkeeping refers to each transaction entered twice.

---

Definitions:

Bank Reconciliation

The process of comparing and adjusting the balance shown in a company’s bank statement with the amount appearing in the company’s own records.

Days' Cash on Hand

A financial metric that indicates how many days a company can continue to pay its operating expenses using only its available cash, without additional income or financing.

Short-Term Investments

Financial assets that are expected to be converted into cash or sold within a year, such as stocks and bonds.

Daily Cash Operating Expenses

The total amount of money spent each day to keep a business running, including utilities, rent, and payroll.