Identify Which of the Following Statements Is True

question 19

Multiple Choice

Identify which of the following statements is true.

• A)The Bardahl formula is based on the firm's inventory period, receivables period, credit period, and total cash expenditures for cost of sales and operating expenses.
• B)The Bardahl formula uses the concept of working capital, cash over current liabilities.
• C)The Bardahl formula provides mathematical exactness when calculating reasonable working capital needs for accumulated earnings tax purposes.
• D)All of the above are false.

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Definitions:

Functional Structure

An organizational design that groups employees based on their specialization or the specific functions they perform within the company.

Cross-functional Communication

The exchange of information and collaboration between different departments or functional areas within an organization.

Multidivisional Structure

An organizational arrangement where a company is divided into semi-autonomous divisions, each focusing on a particular operational area or product line.

Geographic

Refers to anything related to the physical features of an area or the distribution of things over the Earth.