All of the Following Would Be Considered Proper Financial Management

question 53

Multiple Choice

All of the following would be considered proper financial management during both good and bad times EXCEPT which one?

• A) investing all excess cash in long-term securities
• B) planning for sufficient financing when needed
• C) making sure that funds are available to meet tax deadlines
• D) paying bills promptly

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Definitions:

Gross Profit

Revenue from sales minus the cost of goods sold before administrative, financial, and other operating expenses are deducted.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, indicating the ownership value.

Income From Operations

The profit realized from a business's operational activities, calculated before taxes and interest charges.

Research and Development Expense

Costs associated with the development of new products or services, which are often categorized as non-recurring expenses within the operational budget.