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Sagot :
If a publicly traded company is trying to maximize its perceived value to decision makers external to the corporation, the company is most likely to understate liabilities. Correct option is (d).
A liability is something a person or company owes, usually a sum of money. Liabilities are settled over time through the transfer of economic benefits including money, goods, or services. Recorded on the right side of the balance sheet, liabilities include loans, accounts payable, mortgages, deferred revenues, bonds, warranties, and accrued expenses. Liabilities can be contrasted with assets. Liabilities refer to things that you owe or have borrowed; assets are things that you own or are owed.
If a publicly traded company is trying to maximize its perceived value to decision makers external to the corporation, the company is most likely to understate liabilities.
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