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.

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Definitions:

Predictions

The act of forecasting future events or outcomes based on current or past data.

Confounding Variables

External factors that can affect the outcome of an experiment, making it unclear whether the results are due to the independent variable or some other influence.

Dependent Variable

In an experiment, the outcome that is measured; the variable that may change when the independent variable is manipulated.

Experimental Treatment

Experimental treatment refers to new or untested medical interventions being studied for effectiveness and safety before becoming standard treatment options.