Which of the Following Statements Concerning the Cash Flow-Production Cycle

question 22

Multiple Choice

Which of the following statements concerning the cash flow-production cycle is true?

• A) The profits reported in a given time period equal the cash flows generated.
• B) A company's operations and finances are independent of each other.
• C) Financial statements have nothing to do with reality.
• D) The movement of cash to inventory,to accounts receivable,and back to cash is known as the firm's working capital cycle.
• E) A profitable company will always have sufficient cash to meet its obligations.

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Definitions:

Factor-Comparison Method

A job evaluation method that determines the relative value of a job by comparing it with factor levels in other jobs.

Job-Comparison Chart

A visual tool used to compare different jobs based on specific criteria, such as responsibilities and required skills.

Compensable Job Factor

Elements of a job that are considered when determining pay, such as skill level, effort, responsibility, and working conditions.

Internal Equity

In compensation refers to comparisons made by employees to other employees within the same organization.