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.

Question

Quizplus · Accepted Answer

Statement C is false because it incorrectly categorizes ways to handle cash surpluses. Savings is a way to utilize surplus cash, but unsecured loans, secured loans, and other sources like letters of credit are actually methods of obtaining cash or financing, not ways of handling cash surpluses.

Which of the Statements Below Is FALSE