Which
of the following statements is FALSE ?

Question

Which
of the following statements is  FALSE ?

Answer

Most firms buy
their inventory on credit, which increases the amount of time between the cash
investment and the receipt of cash from that investment.

Answer

The longer a firm’s
cash cycle, the more working capital it has, and the more cash it needs to
carry to conduct its daily operations.

Answer

A firm’s cash cycle 
 is the length of time between when the firm pays cash to purchase its
initial inventory and when it receives cash from the sale of the output
produced from that inventory.

Answer

Any reduction in
working capital requirements generates a positive free cash flow that the firm
can distribute immediately to shareholders.

Crowdly

Which of the following statements is FALSE ?

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