Which One of the Following Sentences Is Correct About a Manufacturing

question 289

Multiple Choice

Which one of the following sentences is correct about a manufacturing firm with seasonal sales?

• A) The cash flows for the fixed expenses tend to remain relatively stable from one quarter to the next.
• B) Purchases of raw materials are normally paid for at the time of purchase.
• C) The primary suppliers to the firm are normally paid 30 days prior to supplying their goods to the firm.
• D) Capital expenditures tend to be relatively constant throughout the course of a year.
• E) The total cash disbursements tend to be relatively constant each quarter even though the cash collections vary considerably.

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