Which of the Following Statements Is Most Correct

question 4

Multiple Choice

Which of the following statements is most correct?

• A)Common-size financial income statements provide information about major sources and uses of cash.
• B)Companies with the highest sales growth will have the fewest liquidity problems.
• C)Pro forma statements are the same as common-size statements.
• D)The more efficiently a company manages its working capital the greater its liquidity, all else equal.

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Definitions:

FAIS

Functional Area Information System, systems designed to manage data and information specific to the operations of a particular department or function within an organization.

Three Square Market

A company known for implementing microchip technology for employees, facilitating transactions and access within their facilities.

Microchip Insertion

The process of embedding a microchip, a small semiconductor device containing integrated circuits, into various objects, devices, or even living organisms for identification, data storage, or tracking purposes.

Automated Factory Systems

Technologies and machinery configured to operate with minimal human intervention, significantly enhancing production efficiency and consistency.