Which of the Following Statements Is False

question 40

Multiple Choice

Which of the following statements is false?

• A) The payroll cycle consists of one class of transactions.
• B) Balance sheet accounts related to payroll are generally more significant than related transactions.
• C) Internal controls over payroll are effective for most companies.
• D) Small companies usually have effective controls over payroll.

---

Definitions:

Asset Beta

A measure of the risk of an asset isolated from the firm's financial risk, particularly useful in capital asset pricing models (CAPM).

Risk-Free Asset

An investment with a guaranteed return, without any risk of financial loss.

Positive Rate

An interest rate or yield that is above zero, reflecting a positive return on investment.

Risk-Free Rate

The theoretical return on investment with no risk of financial loss, typically represented by the yield on government securities.