Which of the Following Statements Is False

question 42

Multiple Choice

Which of the following statements is false?

• A) Because investment in permanent working capital is required so long as the firm remains in business, it constitutes a long-term investment.
• B) Because temporary working capital represents a short-term need, the firm should finance this portion of its investment with short-term financing.
• C) Temporary working capital is the difference between the lowest level of investment in short-term assets and the permanent working capital investment.
• D) The matching principle states that short-term needs should be financed with short-term debt and long-term needs should be financed with long-term sources of funds.

Interpret inventory turnover to assess inventory management efficiency.

Calculate return on equity to evaluate financial performance.

Understand the significance of net profit margin and gross margin percentages in assessing profitability.

Understand the characteristics and applications of different satellite orbits (GEO, LEO, MEO, VEO).

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Definitions:

Weekly Salaries

The amount of money or compensation paid to an employee for work performed during a week, often expressed as an annual figure divided by 52 weeks.

Boxplot

A graphical representation that shows the distribution of data points based on a five-number summary: minimum, first quartile, median, third quartile, and maximum.

Histogram

A graphical representation of data that groups numbers within ranges and displays them as bars.

Thread_Colour

Thread colour specifies the hue or shade of threads used in textiles and crafts, important for aesthetic design and matching purposes.