Which of the Following Statements Is FALSE

question 16

Multiple Choice

Which of the following statements is FALSE?

• A)Firms with seasonal cash flows may find themselves with a surplus of cash during some months that is sufficient to compensate for a shortfall during other months.However,because of timing differences,such firms often have short-term financing needs.
• B)A company forecasts its cash flows to determine whether it will have surplus cash or a cash deficit for each period.
• C)Like seasonalities,positive cash flow shocks can create short-term financing needs.
• D)When sales are concentrated during a few months,sources and uses of cash are also likely to be seasonal.

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Definitions:

Perceptual Information

Information processed by the brain that comes from one's senses, influencing perception of the environment.

Inhibited

A psychological or behavioral state where a person is restrained in their actions or reactions.

Temperament

An individual's inherent personality traits, particularly those relating to their emotional responses and intensity.

Inhibited

The state of being held back or restrained, often referring to behavior or emotional expression that is restricted by psychological factors.