Which of the Following Statements Is FALSE

question 22

Multiple Choice

Which of the following statements is FALSE?

• A) A firm's creditors are primarily interested in a firm's Activity Ratios.
• B) Norms exist for all financial ratios that can be applied across all industries.
• C) Current and future stockholders are most interested in a firm's short-term liquidity ratios.
• D) All of the above statements are false.

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Definitions:

Surety

A person or entity that takes responsibility for another's performance of an undertaking, such as fulfilling the terms of a contract.

Principal's Obligation

A duty or responsibility that a principal must fulfill as part of an agreement, particularly in agency relationships.

Repayment Period

The time frame agreed upon within a loan agreement for the borrower to pay back the borrowed amount plus any applicable interest.

Promissory Note

Commercial paper or instrument in which the maker promises to pay a specific sum of money to another person, to his order, or to bearer.