Which of the Following Statements Is FALSE

question 91

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) Positive cash flow shocks cannot 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.

---

Definitions:

Population Variances

The measure of dispersion that quantifies how much the values of a population differ from the population mean.

Pooled Estimate

A combined estimate derived from two or more sample estimates, often used in hypothesis testing or meta-analysis.

Two-Sample Procedure

A statistical method used to compare two independent samples to test a hypothesis about the difference between population parameters.

Common Variance

The shared variance between variables in a statistical model, often referring to the portion of variability that is accounted for by a common factor.