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:

Transposition Error

A common accounting mistake where figures are mistakenly reordered, leading to inaccurate entries and discrepancies in financial records.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to ensure their accuracy.

Journalized

The process of recording transactions in the accounting journals as part of the accounting cycle.

Trial Balance

A bookkeeping worksheet listing the balances of all ledgers in two columns, debits, and credits, to ensure entries are recorded correctly.