Select the Statement That Is Not True

question 3

Multiple Choice

Select the statement that is not true.

• A) A bank overdraft is an example of a 'cash equivalent'.
• B) Cash is the pre-eminent asset as it is the medium with which claims are normally settled.
• C) The concept of cash underpinning the cash flow statement is 'cash and cash equivalents'.
• D) If a firm is operating profitably, it will automatically have plenty of cash.

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Definitions:

Expert Power

A form of power that is derived from possessing knowledge, skills, or expertise in a particular area that others need or value.

Referent Power

A form of influence derived from the admiration or respect one has for the influencer, compelling others to follow based on liking or aspiring to be like the person.

Personal Appeals

Requests to cooperate on the basis of friendship or as a personal favor.

Inspirational Appeals

The use of emotions to raise enthusiasm for the task by appealing to the values and ideals of others.