Which Statement Is Not True

question 51

Multiple Choice

Which statement is not true?

• A)Not all obligations that become due and will be paid within the next accounting period are classified as current liabilities.
• B)The components of working capital are disclosed on the balance sheet.
• C)An increasing current ratio could result from decreasing liquidity.
• D)An operating cycle is the average time taken by a company to convert receivables back into cash.

Understand the different remedies available for breach of contract.

Identify the factors affecting the choice of remedy for a breach of contract.

Recognize the conditions under which a contract may be terminated.

Understand the principles governing the award of damages in contract law.

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Definitions:

Complementary Goods

Products and services that are used together. When the price of one falls, the demand for the other increases (and conversely).

Positive

Pertaining to statements or analyses that are based on facts and devoid of any value judgments or recommendations.

Supply Curves

Graphical representations that show the relationship between the price of a good and the total amount of the good that suppliers are willing to sell.

Highly Inelastic

Describes a situation where the quantity demanded or supplied changes very little in response to changes in price.