Which of the Following Statements Is FALSE

question 91

Multiple Choice

Which of the following statements is FALSE?

• A) Firms with seasonal cash flows may find themselves with a surplus of cash during some months that is sufficient to compensate for a shortfall during other months. However, because of timing differences, such firms often have short-term financing needs.
• B) A company forecasts its cash flows to determine whether it will have surplus cash or a cash deficit for each period.
• C) Positive cash flow shocks cannot create short-term financing needs.
• D) When sales are concentrated during a few months, sources and uses of cash are also likely to be seasonal.

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Definitions:

Managing

The act of overseeing or controlling operations, people, or resources to achieve certain objectives.

Motivation

The psychological process that stimulates and directs behavior towards achieving specific goals or fulfilling needs.

Contingency Work

Refers to temporary, flexible, or freelance jobs, often without long-term contracts or traditional benefits.

Advertising Firm

A company specializing in creating, planning, and handling advertising and sometimes other forms of promotion for its clients.