Which of the Following Statements Is False

question 41

Multiple Choice

Which of the following statements is false?

• A) If a company anticipates an ongoing surplus of cash, it may choose to increase its dividend payout.
• B) Seasonal sales can create large short-term cash flow deficits and surpluses.
• C) The first step in short-term financial planning is to forecast the company's future net working capital.
• D) Deficits resulting from investments in long-term projects are often financed using long-term sources of capital, such as equity or long-term bonds.

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Definitions:

Control Chart

A graphical tool used in process control to display how a process changes over time, helping to monitor its stability.

Defective

In quality control, defective refers to a product or outcome that fails to meet certain predefined standards or specifications.

Pooled Standard Deviation

An estimate of standard deviation across different samples combined, assuming equal or varying sample sizes but a common true variance.

Control Limits

Statistical boundaries set in quality control processes to identify when a process is out of control, based on specifications or historical performance data.