Which of the Following Statements Is NOT CORRECT

question 56

Multiple Choice

Which of the following statements is NOT CORRECT?

• A) Credit policy has an impact on working capital because it influences both sales and the time before receivables are collected.
• B) The cash budget is useful to help estimate future financing needs, especially the need for short-term working capital loans.
• C) If a firm wants to generate more cash flow from operations in the next month or two, it could change its credit policy from 2/10 net 30 to net 60.
• D) Managing working capital is important because it influences financing decisions and the firm's profitability.
• E) A company may hold a relatively large amount of cash and marketable securities if it is uncertain about its volume of sales, profits, and cash flows during the coming year.

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Definitions:

Impotence

Also known as erectile dysfunction, it refers to the inability to achieve or maintain an erection sufficient for satisfactory sexual performance.

Priapism

A medical condition characterized by a persistent and often painful erection not related to sexual stimulation or desire.

Antidepressants

Medications used to treat depression and other conditions by altering the levels of neurotransmitters in the brain.

Prolonged Erections

An erection lasting more than four hours without sexual arousal, known medically as priapism, requiring immediate medical attention.