Cash Flows Are Independent of the Payment Pattern of Customers

question 131

True/False

Cash flows are independent of the payment pattern of customers, the speed at which suppliers and creditors process checks, and the efficiency of the banking system.

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Definitions:

Specific Time

Denotes a precise moment or period that is identified for the occurrence of an event or action.

Non-Recourse

Pertaining to a loan or obligation where the lender's recovery, in the event of default, is limited to the collateral securing the loan, with no further claim on the borrower’s assets.

Money Orders

A payment order for a pre-specified amount of money, similar to a check, that is widely used for safe transfers of funds.

Promissory Notes

Written promises to pay a specified sum of money to a named party, under specified conditions.