Which of the Following Is NOT a Situation That Might

question 41

Multiple Choice

Which of the following is NOT a situation that might lead a firm to increase its holdings of short-term marketable securities?

• A) The firm must make a known future payment, such as paying for a new plant that is under construction.
• B) The firm is going from its peak sales season to its slack season, so its receivables and inventories will experience a seasonal decline.
• C) The firm is going from its slack season to its peak sales season, so its receivables and inventories will experience seasonal increases.
• D) The firm has just sold long-term securities and has not yet invested the proceeds in operating assets.
• E) The firm just won a product liability suit one of its customers had brought against it.

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Definitions:

Dual-Coding Theory

A theory of cognition proposing that visual and verbal information are processed differently and along distinct channels in the human mind, enhancing learning.

Semantic Codes

In psychology and cognitive science, it refers to the process of encoding information into memory, focusing on the meaning of the information.

Structural Encoding

Structural encoding is the process of encoding information according to the structure of objects, focusing on the physical features rather than the meaning.

Phonemic Encoding

The process by which sounds are translated into mental symbols for storage in memory.