Which One of These Statements Is Correct

question 60

Multiple Choice

Which one of these statements is correct?

• A)Long-term debt is the residual difference between assets and liabilities.
• B)Net income that is not paid out in dividends decreases retained earnings.
• C)Long-term debt requires a payout of cash within a stated time period.
• D)Stockholders' equity is stated at market value on the balance sheet.
• E)Stockholders' equity increases as the liquidity of a firm increases.

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Definitions:

Physiological Tendencies

Inherent biological or bodily inclinations that influence behavior, reactions, and physical states of an individual.

Attitudes

A psychological construct representing an individual's degree of like or dislike for an item.

Psychological Tendencies

Patterns or propensities in thought, emotion, and behavior that are characteristic of an individual, influencing their psychological responses and interactions.

Favor

An act of kindness beyond what is due or usual.