Biology Forums - Study Force

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) 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.
D) 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).

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