Identify Which of the Following Statements Is True

question 45

Multiple Choice

Identify which of the following statements is true.

• A) The Bardahl formula uses the concept of working capital, cash over current liabilities.
• B) The Bardahl formula is based on the firm's inventory period, receivables period, credit period, and total cash expenditures for cost of sales and operating expenses.
• C) The Bardahl formula provides mathematical exactness when calculating reasonable working capital needs for accumulated earnings tax purposes.
• D) All of the above are false.

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Definitions:

Contingency Funds

Reserved money set aside by organizations or projects to address unforeseen events or emergencies that may incur additional costs.

Risk Profile

A risk profile is a quantified analysis of the types of threats an organization, asset, project, or individual faces, focusing primarily on the risk exposure level.

Political Risk

The potential for losses or adverse effects on company operations and profitability due to political changes or instability in a country.

Global Projects

Projects that involve stakeholders, teams, and impacts across multiple countries or worldwide.