Which of the Following Statements Is NOT CORRECT

question 43

Multiple Choice

Which of the following statements is NOT CORRECT?

• A) A company may hold a relatively large amount of cash and marketable securities if it is uncertain about its volume of sales,profits,and cash flows during the coming year.
• B) Credit policy has an impact on working capital because it influences both sales and the time before receivables are collected.
• C) The cash budget is useful to help estimate future financing needs,especially the need for short-term working capital loans.
• D) If a firm wants to generate more cash flow from operations in the next month or two,it could change its credit policy from 2/10,net 30 to net 60.
• E) Managing working capital is important because it influences financing decisions and the firm's profitability.

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Definitions:

Canadian Charter

Also known as the Canadian Charter of Rights and Freedoms, it is part of Canada's Constitution that protects various individual rights and liberties.

Recitation

An educational practice where students orally present learned material before a teacher or a class, often used for memorization and practice.

Intervening Material

Information or stimuli presented between the initial learning phase and the recall phase in memory experiments, often used to study the processes of interference and forgetting.

Increase In Forgetting

A rise in the inability to recall or recognize information that was once stored in the memory.