Which of the Following Statements Is FALSE

question 4

Multiple Choice

Which of the following statements is FALSE?

• A)The main components of net working capital are cash,inventory,receivables,and payables.
• B)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.
• C)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.
• D)If the firm pays cash for its inventory,the firm's operating cycle is identical to the firm's cash cycle.

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Definitions:

Teller Scheduling

A process in the banking sector for allocating shifts and work hours to tellers, optimizing customer service and operational efficiency.

Operations

Pertains to the day-to-day activities involved in running a business or manufacturing processes to efficiently produce goods or services.

Crew Scheduling

The process of assigning work or tasks to a team or crew, often considering factors like skills, availability, and labor laws.

International Monetary Exchange

The system by which the currencies of different countries are exchanged for one another, enabling international trade and financial transactions.