Which of the Following Statements Is NOT CORRECT

question 43

Multiple Choice

Which of the following statements is NOT CORRECT?

• A) 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.
• B) Credit policy has an impact on working capital because it influences both sales and the time before receivables are collected.
• C) The cash budget is useful to help estimate future financing needs,especially the need for short-term working capital loans.
• D) 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.
• E) Managing working capital is important because it influences financing decisions and the firm's profitability.

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Definitions:

More Resources

Refers to increasing or expanding the availability of materials, tools, finances, or personnel required for a task or organization.

Replacing

The action of taking something out and putting another thing in its place.

Transferring

The process of moving or assigning an employee, resources, or responsibilities from one position, location, or task to another within an organization.

Collaboration

A conflict management style in which the person works through conflict differences and solves problems so everyone wins.