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:

Proponents

Individuals or parties who support or advocate for a particular idea, proposal, or cause.

Ancient Greek

Refers to the civilization of Greece in the classical period, known for its advances in arts, philosophy, and politics.

Various Shapes

Refers to the diversity of forms or outlines that objects, substances, or structures can possess.