Which of the Following Statements Is FALSE

question 38

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:

Promissory Notes Act

Legislation that governs the issuance, form, and effects of promissory notes, which are written promises to pay a specified sum of money to a specified person or the bearer at a specified time.

Countermand Payment

The act of canceling a payment or stopping the processing of a payment order by the payer.

Certified Cheque

A cheque guaranteed by a bank, indicating that the signer has enough funds in their account to cover the amount of the cheque.

Bills Of Exchange Act

A law that governs the creation, transfer, and effects of a bill of exchange, which is a written order used in international trade requiring one party to pay a fixed sum of money to another party on demand or at a predetermined date.