Question

Which of the following statements is false?

Question 50 options:

	A company should plan the timing of major expenditures in light of its operating cycle.
	A basic principle of cash management is to increase the speed of paying liabilities.
	A cash budget will help determine if additional financing will be necessary.
	A key principle of cash management is to increase the speed of collection on receivables.

Inventory cost methods make assumptions about the flow of

	Costs
	Resale Prices
	Goods
	Fair Value

The independent audit committee of the board of directors is not responsible for reviewing the company’s internal control systems to ensure that they are adequate to result in

	fair financial results.
	complete financial results.
	accurate financial results.
	reasonable financial results.

Answer 1

50.

The following statement is false:

A basic principle of cash management is to increase the speed of paying liabilities.

Explanation:

There is no such principle of cash management that requires to increase the speed of paying liabilities.

51.

Inventory cost methods make assumptions about the flow of:

Costs

Explanation:

Inventory cost methods are assumptions about the flow of costs. They consider different assumptions through which the inventory cost will flow. For example, FIFO, LIFO, and Weighted-average method.

52.

The independent audit committee of the board of directors is not responsible for reviewing the company’s internal control systems to ensure that they are adequate to result in:

accurate financial results

Explanation:

The independent audit committee is not responsible for accurate financial results. They are only responsible for complete, and reasonably fair financial results.