Which of the Following Is Not True

question 19

Multiple Choice

Which of the following is not true?

• A)Assets = Liabilities + Shareholders' Equity
• B)Liabilities = Assets - Shareholders' Equity
• C)Shareholders' Equity + Liabilities - Assets = 0
• D)Liabilities - Shareholders' Equity = Assets

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Definitions:

Earnings Per Share

A measure of a company's profitability that divides its net earnings available to common shareholders by the outstanding shares.

Quick Ratio

A measure of a company's ability to meet its short-term obligations using its most liquid assets, calculated as (cash + marketable securities + accounts receivable) / current liabilities.

Current Ratio

This ratio assesses a firm's capacity to cover its obligations due in the next year by comparing its current assets to its current liabilities.

Interval Measure

A financial metric used to determine how long a company can operate with its available amount of current assets, calculated usually in months.