Which Statement Concerning Liabilities Is Incorrect

question 19

Multiple Choice

Which statement concerning liabilities is incorrect?

• A) The absolute value of liquidity ratios is usually more important than their trend over time.
• B) Borrowing to finance assets provides the potential for greater returns for owners but also means greater risk.
• C) A difference between accounts payable and bills payable is that the liability created with bills payable is evidenced by a bills payable or a promissory note.
• D) Leverage is the use of borrowed funds in an attempt to earn a return greater than the interest paid on the borrowings.

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Definitions:

Work-Family Conflict

A form of tension or strain arising from incompatible demands between work responsibilities and family roles.

Job Design

Involves the structuring of job tasks, functions, processes, and responsibilities, aiming to improve employee satisfaction, productivity, and overall organizational performance.

Working Conditions

The environment in which an individual works, including aspects such as hours, safety, resources, and atmosphere, which can affect health and satisfaction.

Hostile Work Environment

A workplace situation where an employee experiences ongoing harassment or discrimination, making it difficult to perform their job.