Which of the Following Statements Is False

question 116

Multiple Choice

Which of the following statements is false?

• A)the cash conversion cycle is the time between when the firm pays its suppliers and when it collects money from its customers.
• B)Because commercial paper rates are typically below the U.S.Treasury bill rates, commercial paper is a valuable short-term financing source for high quality business firms.
• C)More efficient management of working capital assets will lessen the firm's need to obtain financing.
• D)All of the statements above are correct.

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Definitions:

Budgeted Cost Systems

Accounting systems that use budgets to project the costs of operating a business, typically used for planning and control purposes.

Standards

Established requirements, specifications, guidelines, or characteristics to be used consistently to ensure that materials, products, processes, and services are fit for their purpose.

Product Costs

Direct costs attributable to the creation of a product, including direct labor, materials, and manufacturing overhead.

Cost Standards

Cost standards refer to pre-determined costs for products, operations, or projects, used as benchmarks for measuring actual performance or costs.