Which of the Following Statements Is Not True

question 8

Multiple Choice

Which of the following statements is not true?

• A)If a firm is operating profitably, it will automatically have plenty of cash.
• B)The concept of cash underpinning the statement of cash flows is 'cash and cash equivalents.'
• C)A bank overdraft is an example of a 'cash equivalent.'
• D)Cash is the pre-eminent asset as it is the medium with which claims are normally settled.

---

Definitions:

Economic Policies

Measures and strategies implemented by governments to regulate and control the economy, including fiscal, monetary, and trade policies.

Richest Country

A country characterized by the highest levels of wealth, income, or economic productivity compared to others, often measured by GDP per capita.

Real GDP

Gross Domestic Product adjusted for changes in the price level, providing a more accurate reflection of an economy's size and growth.

Standard of Living

The measure of affluence, ease, material belongings, and essential items provided to a specific socioeconomic category or region.