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.

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Definitions:

Aggregate Demand

Aggregate demand represents the total demand for goods and services in an economy at a given time and price level.

Taxes

Compulsory financial charges or levies imposed by a government on individuals or entities to fund public expenditures.

Government Spending

The total amount of public expenditures by the government, including spending on healthcare, education, infrastructure, and defense.

Pessimism

A tendency to see the worst aspect of things or believe that the worst will happen; a lack of hope or confidence in the future.