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:

Behaviourally Anchored Rating Scale

A performance appraisal method that uses specific examples of behavior to rate employees, making the evaluation more objective and transparent.

Graphic Rating Scale

A graphic rating scale is a method used in performance appraisals where an employee's performance is rated on a scale, typically ranging from poor to excellent, across various categories.

Forced-Choice Method

A trait approach to performance rating that requires the rater to choose from statements designed to distinguish between successful and unsuccessful performance.

Developmental Purposes

Activities or strategies designed to improve individual skills, capabilities, and knowledge, often for professional growth or to enhance performance in current or future roles.