Which of the Statements Below Is FALSE

question 4

Multiple Choice

Which of the statements below is FALSE?

• A)The marketing department finds published data related to its product from another state.This is an example of internal data.
• B)Once the sales estimate is in,the finance manager must estimate the cash flow from these sales in terms of timing.
• C)A company's average cost of installing its product for a customer is an example of internal data.
• D)A company could take a simple approach to estimating revenue for the upcoming year by simply averaging the two previous growth rates; taking just the prior year's growth rate; or,using the average dollar increase in sales from the past two years.

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Definitions:

Common Stockholders' Equity

The portion of a company's equity ownership attributed to common stock, including retained earnings and contributed capital.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue.

Return On

A financial ratio that measures the amount of return generated relative to the investment made.

Earnings Per Share

A measure of a company's profitability, calculated as the net income divided by the number of outstanding shares of its common stock.