Identify the False Statement Below

question 55

Multiple Choice

Identify the false statement below.

• A)Retail stores do not have a production cycle.
• B)Financial institutions have installment-loan cycles.
• C)Every organization should implement every transaction cycle module.
• D)A service company does not have an inventory system.

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Definitions:

Contingent Liability

A contingent liability is a potential financial obligation that may arise depending on the outcome of an uncertain future event.

Accrual

A bookkeeping approach that logs income and expenditures at the time they occur, irrespective of the timing of actual cash transactions.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, presenting the financial results and health of the entity.

Onerous Contract

A contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it.