Which of the Following Statements Is FALSE

question 43

Multiple Choice

Which of the following statements is FALSE?

• A)The firm's cash cycle is the average length of time between when a firm originally purchases its inventory and when it receives the cash back from selling its product.
• B)If the firm pays cash for its inventory, the firm's operating cycle is identical to the firm's cash cycle.
• C)The main components of net working capital are cash, inventory, receivables and payables.
• D)Working capital includes the cash that is needed to run the firm on a day-to-day basis. It does not include excess cash, which is cash that is not required to run the business and can be invested at a market rate.

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Definitions:

Rational

Based on reasoning or logic, often as opposed to emotional or instinctual decision-making.

Noble Goals

High-minded objectives or aspirations that are morally dignified or of high moral character.

Unpleasant Emotions

Feelings that are often considered negative and undesirable, such as sadness, anger, fear, or frustration.

Destructive

Causing great and irreparable harm or damage.