Which of the Following Statements Is NOT CORRECT

question 23

Multiple Choice

Which of the following statements is NOT CORRECT?

• A) credit policy has an impact on working capital because it influences both sales and the time before receivables are collected.
• B) the cash budget is useful to help estimate future financing needs, especially the need for short-term working capital loans.
• C) if a firm wants to generate more cash flow from operations in the next month or two, it could change its credit policy from 2/10 net 30 to net 60.
• D) managing working capital is important because it influences financing decisions and the firm's profitability.
• E) a company may hold a relatively large amount of cash and marketable securities if it is uncertain about its volume of sales, profits, and cash flows during the coming year.

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Definitions:

Economic Issues

Problems or concerns related to the production, distribution, and consumption of goods and services in an economy.

Gatekeeping

The process of controlling or limiting general access to something, such as information, resources, or market entry, typically by a person or organization in a position of power.

Quality of Life

The general well-being of individuals and societies, encompassing material living conditions (income, employment, housing) and quality aspects (health, education, environment).

Diversity

Blending individuals of different genders, ethnic backgrounds, cultures, religions, ages, and physical and mental abilities to enhance a company’s chances of success.