Which of the Following Statements Is Incorrect

question 148

Multiple Choice

Which of the following statements is incorrect?

• A) Higher financial leverage involves higher risk.
• B) Risk is higher if a company has more liabilities.
• C) Risk is higher if a company has higher assets.
• D) The debt ratio is one measure of financial risk.
• E) Lower financial leverage involves lower risk.

Appreciate the dynamics of financial reporting in an international context, including factors driving the use of IFRS or other standards.

Understand the influence of management objectives and stakeholder power on the selection of accounting policies.

Understand the differentiation between business and non-business organizations and the rationale for allowing different accounting policies.

Recognize the various GAAP that countries might adopt for private companies, including their advantages and disadvantages.

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Definitions:

Unintentional Tort

A type of tort or civil wrong where the harm occurred as the result of a negligent act, not intended to cause harm.

Surgical Wounds

Incisions or cuts made in the skin during surgery, which require proper care and monitoring to promote healing and prevent infection.

Side Rails

Bars or rails attached to the sides of a bed, stretcher, or other piece of medical equipment to prevent falls and provide support.

Sexually Transmitted Infections

Infections that are spread primarily through person-to-person sexual contact.