Which of the following is not considered an effective cashmanagement strategy?Multiple ChoicePlanning expenditures.Delaying payment of liabilities until the last possibleday.Retaining excess cash for unexpected expenditures.Keeping only necessary assets.Encouraging collection of receivables by offeringdiscounts for early payments.

Cash management: It implies to a process that includes the management, collection, and effective…

Answered: Which of the following is not…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 9Q

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Which of the following is not a basic principle of cash management? Keep inventory levels high. Invest idle cash. Increase the collection of receivables. Delay payment of liabilities.
A company is expecting a temporary negative cash flow. Discuss the benefits of funding the deficit by arranging an overdraft facility with its bank
May you help me find which of the following answer choices does not show good cash management regarding the controls over cash disbursements?
Cash management principles do not include: a.paying suppliers promptly. b.speeding up collection from customers. c.delaying payment of suppliers. d.earning the greatest return possible on excess cash.
Classification of Changes in Short-Term Financing. The statement of cashflows classifies changes in accounts payable as an operating activity but classifies changes in short-term borrowing as a financing activity. Explain this apparent paradox. Please explain without copying from another source.
All of the following are weaknesses of the payback period EXCEPT Select one: a. only an implicit consideration of the timing of cash flows. b. the difficulty of specifying the appropriate payback period. c. a disregard for cash flows after the payback period. d. that it uses cash flows, not accounting projects.
After removing the Change Fund, a cash shortage exists if: a.the Petty Cash Fund is greater than the Change Fund. b.the Change Fund is greater than the Petty Cash Fund. c.the day's receipts are greater than the register reading. d.the day's receipts are less than the register reading.
A deposit institution can offset its liquidity risk to reduce its net deposit drains by reducing its assets through all of the following methods except: a. Borrowing funds or issuing equity. b. Calling back its loans. c. Use cash reserve. d. Selling securities.
Which of the following items describes a weakness of the internal rate-of-return method?a. The internal rate of return is difficult to calculate and requires a financial calculator or spreadsheet tool such as Excel to calculate efficiently.b. Cash flows from the investment are assumed in the IRR analysis to be reinvested at the internal rate of return.c. The internal rate-of-return calculation ignores time value of money.d. The internal rate-of-return calculation ignores project cash flows occurring after the initial investment is recovered.
Explain in detail with examples of different methods for cash transactions, and the costs associated with each. Provide brief justification on how these costs can be reduced?
Liquidity means having access to ready cash, including savings and credit, to cover unexpected expenses. In managing your liquidity, you must consider the following: management deals with the decisions about how much credit you need to support your spending and which sources of credit to use. management deals with deciding how much money to retain in liquid form and how to allocate the funds among short-term investment instruments. A Credit; Money B Cash; Debit C Money; Credit D Credit; Debit Debit; Credit
The objectives of Receivables Management are as follows: a. All of above O b. To maintain the debtors at minimum according to the credit policy offered to customers. O C. To control the cost of receivables, cost of collection, administrative expenses, bad debts and opportunity cost of funds blocked in the receivables. O d. To obtain optimum (non maximum) value of sales;

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