Which of the Following Statements Is False

question 9

Multiple Choice

Which of the following statements is false?

• A) A basic principle of cash management is to increase the speed of paying liabilities.
• B) A company should plan the timing of major expenditures in light of its operating cycle.
• C) A cash budget will help determine if additional financing will be necessary.
• D) A key principle of cash management is to increase the speed of collection on receivables.

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Definitions:

Balance Sheet

A financial statement that displays a company's assets, liabilities, and shareholders' equity at a specific point in time, showing the company's financial position.

Rental Income

Rental income refers to the revenue received from leasing property or other assets to tenants.

Income Statement

A financial report that shows a company's revenues, expenses, and profit or loss over a specific period of time.

Owner's Equity Statement

A financial document showing the starting balance, additions and subtractions, and the ending balance of the owner’s equity account.