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

---

Definitions:

Expenses

Costs incurred by a business in the process of earning revenue.

Consuming Services

Consuming services refers to the use of services provided by businesses or individuals which are utilized and exhausted during the process, such as electricity, consulting, or maintenance services.

Generating Revenues

The process of bringing in income from business activities, sales, or services offered.

Drawing Account

An account used to track withdrawals made by the owner from the business for personal use.