Which of the Following Statements Is FALSE

question 16

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:

Advantages

Favorable conditions or circumstances that increase the chances of success or effectiveness.

Disadvantages

Conditions or situations that hinder progress or reduce the ability to achieve objectives, often resulting in inequality or less favorable outcomes.

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A set of guidelines and ethical standards designed to help sociologists navigate ethical dilemmas and conduct in their professional activities.

Ethics

The branch of knowledge that deals with moral principles, guiding conduct, and distinguishing between right and wrong behavior.