Which of the Following Statements Is NOT CORRECT

question 43

Multiple Choice

Which of the following statements is NOT CORRECT?

• A) A company may hold a relatively large amount of cash and marketable securities if it is uncertain about its volume of sales,profits,and cash flows during the coming year.
• B) Credit policy has an impact on working capital because it influences both sales and the time before receivables are collected.
• C) The cash budget is useful to help estimate future financing needs,especially the need for short-term working capital loans.
• D) If a firm wants to generate more cash flow from operations in the next month or two,it could change its credit policy from 2/10,net 30 to net 60.
• E) Managing working capital is important because it influences financing decisions and the firm's profitability.

---

Definitions:

Plasma Ph

The measure of acidity or alkalinity of the plasma, a component of blood.

Ventilation-Perfusion Coupling

The coordination between the flow of air into the lungs (ventilation) and the blood flow in the pulmonary capillaries (perfusion), crucial for efficient gas exchange.

Hering-Breuer Reflex

A physiological reflex that helps regulate the depth of breathing and prevents the overinflation of the lungs by signaling the respiratory center to inhibit inhalation.

Breathing

The physiological process of inhaling oxygen from the air into the lungs and exhaling carbon dioxide out, essential for life.