Which of the Following Is Incorrect

question 21

Multiple Choice

Which of the following is incorrect?

• A)Current liabilities are those that will be satisfied within one year or the operating cycle, whichever is longer.
• B)Liquidity is the ability of the company to meet its total obligations.
• C)Current liabilities impact a company's liquidity.
• D)Working capital is equal to current assets minus current liabilities.

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Definitions:

Candy Company

A business enterprise that specializes in the production and sale of sweets and chocolates.

Probability

A measure of the likelihood that a particular event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Contact Lenses

Optical devices worn directly on the cornea of the eye to correct vision or for cosmetic purposes.

Students

Individuals who are enrolled in an educational institution for the purpose of learning and acquiring knowledge and skills.