Of the following statements, which would not generally cause a company to increa
ID: 2733775 • Letter: O
Question
Of the following statements, which would not generally cause a company to increase its holdings non-operating, short-term marketable securities?
Select one:
A. The company is transitioning from its peak sales season to its slack season, so its receivables and inventories will experience a seasonal decline.
B. The company is transitioning from its slack season to its peak sales season, so its receivables and inventories will experience seasonal increases.
C. The company has just sold long-term securities and has not yet invested the proceeds in operating assets.
D. The company just won a product liability suit one of its customers had brought against it.
E. The company must make a known future payment, such as paying for a new plant that is under construction.
Explanation / Answer
The company just won a product liability suit one of its customer had brough against it as it will nor provide any incremental cash flow to the company
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