Which of the Following Statements Is NOT CORRECT

question 102

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.

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Definitions:

Avoidance Goals

Targets aimed at preventing undesirable outcomes, as opposed to pursuing positive outcomes.

Achievement Goal Theory

A framework in psychology that focuses on how individuals' goals, both competence-based and achievement-based, motivate their behaviors and learning approaches.

Peer-assisted Learning

An educational approach where peers engage in collaborative learning activities together, often involving students tutoring each other in their areas of strength.

Acquiring Knowledge

The process of obtaining information, understanding, and skills through experience, education, or being taught.