Which of the Following Statements Is FALSE

question 17

Multiple Choice

Which of the following statements is FALSE?

• A)A firm's cash cycle is the length of time between when the firm pays cash to purchase its initial inventory and when it receives cash from the sale of the output produced from that inventory.
• B)The longer a firm's cash cycle,the more working capital it has,and the more cash it needs to carry to conduct its daily operations.
• C)Most firms buy their inventory on credit,which increases the amount of time between the cash investment and the receipt of cash from that investment.
• D)Any reduction in working capital requirements generates a positive free cash flow that the firm can distribute immediately to shareholders.

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Definitions:

Hypothalamus

Forebrain region that controls processes related to homeostasis; produces and controls release of some hormones.

Primary Thermostat

A fundamental regulatory mechanism or device that controls the primary temperature settings within a given environment or system.

Vertebrate Body

The structural framework of vertebrates, characterized by a backbone or spine, and includes the skeletal, muscular, and internal organ systems.

Endothermic Animals

Organisms that regulate their body temperature by generating heat internally, typically through metabolic processes.