Which of the Statements Below Is FALSE

question 81

Multiple Choice

Which of the statements below is FALSE?

• A)A simple monthly cash flow estimate allows managers to anticipate periods when the company may need to borrow and periods when the company will have excess cash for investing.
• B)There is a problem in managing cash if sales are low for several months,causing a negative balance and delaying payments to suppliers or employees.
• C)There are four basic ways to handle cash surpluses: Savings; Unsecured Loans (Commercial Paper,Trade Credit,or Banker's Acceptance); Secured Loans (Using Accounts Receivable or Inventories); and Other Sources (Letters of Credit).
• D)By far the simplest way to cover a cash deficit is to take money out of one's savings account-provided,of course,that one has sufficient savings to cover the necessary transfer.

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Definitions:

Misleading Information

Incorrect or deceptive data presented, often with the intention of influencing beliefs or behaviors falsely.

Short-term Memory

The skill to retain a slight quantity of information in an instantly available status for a short span of time.

Elaborative Rehearsal

Elaborative Rehearsal is a method of memory consolidation in which information is related to existing knowledge or deeply analyzed to facilitate long-term storage.