Which of the Following Statements Is NOT CORRECT

question 56

Multiple Choice

Which of the following statements is NOT CORRECT?

• A) Credit policy has an impact on working capital because it influences both sales and the time before receivables are collected.
• B) The cash budget is useful to help estimate future financing needs, especially the need for short-term working capital loans.
• C) 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.
• D) Managing working capital is important because it influences financing decisions and the firm's profitability.
• E) 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.

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Definitions:

Julio's Amygdala

A personalized reference to the amygdala, a region of the brain involved in processing emotions, which is responsible for detecting fear and preparing for emergency events.

Right Hemisphere

The half of the brain that controls the left side of the body, often associated with creativity, spatial ability, and visual imagery.

Left Hemisphere

The left side of the human brain, typically responsible for controlling the right side of the body and involved in logical reasoning, detailed analysis, and language processing.

James-Lange Theory

A theory of emotion suggesting that physiological arousal precedes the experience of emotion, meaning our feelings result from our body's reactions.