Which of the Following Statements Is FALSE

question 4

Multiple Choice

Which of the following statements is FALSE?

• A)The main components of net working capital are cash,inventory,receivables,and payables.
• B)The firm's cash cycle is the average length of time between when a firm originally purchases its inventory and when it receives the cash back from selling its product.
• C)Working capital includes the cash that is needed to run the firm on a day-to-day basis.It does not include excess cash,which is cash that is not required to run the business and can be invested at a market rate.
• D)If the firm pays cash for its inventory,the firm's operating cycle is identical to the firm's cash cycle.

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Definitions:

Counterconditioning

A behavior therapy technique that involves replacing an unwanted response to a stimulus with a wanted response.

Mindfulness

A mental state achieved by focusing one’s awareness on the present moment, while calmly acknowledging and accepting one's feelings, thoughts, and bodily sensations.

Validation

The act of acknowledging and accepting another person's feelings, thoughts, and experiences as understandable.

Upbringing

The care and training provided to an individual during childhood, which significantly influences their development and character.