Which of the Following Is Not a Reason Why a Company

question 130

Multiple Choice

Which of the following is not a reason why a company might prefer to report a liability as long-term rather than current?

• A)It may cause the firm to appear less risky to investors and creditors.
• B)It may increase interest rates on borrowing.
• C)It may cause the company to appear more stable commanding a higher stock price for new stock listings.
• D)It may reduce interest rates on borrowing.

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Definitions:

Holy Alliance

A coalition formed by Russia, Austria, and Prussia in 1815, after the Napoleonic Wars, to defend Christian principles and suppress revolutionary and secular movements.

Italian Revolution

A series of political events that contributed to the unification of Italy in the 19th century, leading to the consolidation of the Italian states into a single nation.

King Charles Albert

An Italian monarch who ruled the Kingdom of Sardinia from 1831 until his abdication in 1849, known for his liberal reforms and involvement in the First Italian War of Independence.

Hungarian Revolutionaries

Individuals participating in the 1956 Hungarian Revolution against Soviet-imposed policies and seeking independence.