Which of the Following Statements Is Not True

question 18

Multiple Choice

Which of the following statements is not true?

• A) Net working capital is the difference between short-term assets and short term liabilities.
• B) Short-term financing deals with the management of short-term liabilities and short-term assets.
• C) Short-term financing is concerned with determining reasonable amounts of cash to hold, which customers should get credit and others related issues.
• D) Net working capital does not utilize the concept of present value since all flows are short-term.

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Definitions:

Technical Analysis

Research to identify mispriced securities that focuses on recurrent and predictable stock price patterns and on proxies for buy or sell pressure in the market.

Strong Form

Strong form is a type of efficient market hypothesis that suggests all information, both public and private, is fully reflected in stock prices, making it impossible to consistently achieve higher returns.

EMH

Efficient Market Hypothesis, the theory that all available information is already reflected in stock prices, and it is impossible to consistently achieve higher returns.

Insider Information

Knowledge about a company's activities or financial condition that has not been made public and that can provide a financial advantage in the market.