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28. Which of the following statements is NOT correct? A) Many companies have cyclical operating cash needs due to the seasonality of sales, which requires
28. Which of the following statements is NOT correct? A) Many companies have cyclical operating cash needs due to the seasonality of sales, which requires companies to build up inventory prior to cash being collected from customers. B) Accounts receivables, gross, reported in the current asset section of a balance sheet represents the total amount to be expected to pay to customers within the next year. C) A letter of credit Provides a guarantee of payment from the buyer, reducing the credit risk to the seller D) Covenants represent terms and conditions set forth in a lending agreement to reduce the probability of nonpayment and help lenders detect deteriorating loan quality E) When considering the results of an Altman Z-Score analysis, scores above 3.00 suggest the company is healthy and there is a low bankruptcy potential in the short-term
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