Which One of These Statements Is Correct

question 16

Multiple Choice

Which one of these statements is correct?

• A)Firms prefer to receive cash later rather than sooner.
• B)Corporate finance focuses on sales and profits.
• C)Value creation depends solely on profits.
• D)The amount of April sales must equal the amount of cash received by the firm during April.
• E)The cash flows of a firm are generally uncertain.

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Definitions:

Deficiency Judgment

A court order that holds a borrower personally liable for the shortfall when the sale of a foreclosed property does not cover the outstanding loan balance.

Sale

The passing of title from a seller to a buyer for a price.

Real Property

Land and anything permanently attached to it, such as buildings and trees, considered a form of real estate.

Attachment Process

A legal procedure used by a creditor to seize the property of a debtor in order to satisfy a judgment.