Which of the Following Statements Is False

question 22

Multiple Choice

Which of the following statements is false?

• A) Firms with seasonal cash flows may find themselves with a surplus of cash during some months that is sufficient to compensate for a shortfall during other months. However, because of timing differences, such firms often have short-term financing needs.
• B) A company forecasts its cash flows to determine whether it will have surplus cash or a cash deficit for each period.
• C) Like seasonalities, positive cash flow shocks can create short-term financing needs.
• D) When sales are concentrated during a few months, sources and uses of cash are also likely to be seasonal.

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Definitions:

Utility Theory

A framework in economics and decision theory that evaluates actions based on their expected outcomes, maximizing pleasure or happiness.

Reasonably Priced Medications

Drugs and medical treatments offered at prices that are considered fair and affordable to consumers.

Prescription Decision

The process by which medical professionals determine the most appropriate medication to treat a patient’s condition.

Affective Forecasting

The process of predicting how one would feel in response to future emotional events.