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:

DRO

A behavior modification strategy that involves delivering reinforcement only when a specific undesired behavior has not occurred during a designated period.

DRA

Differential Reinforcement of Alternative behavior, a technique used to encourage positive behaviors while extinguishing undesired ones by reinforcing an alternative action.

DRO Reset Schedule

A DRO schedule that involves resetting the interval every time the inappropriate target behavior occurs.

Reinforcement

In behavioral psychology, a process by which a behavior is strengthened or increased through the addition of a stimulus following the behavior.