INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 83

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-If the value of the underlying stock dropped drastically,the owner of a convertible bond [would still receive $1,000 | would receive the market value of the stock] at maturity.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

Familiarize with the components of internal controls and their importance in financial management.

Calculate and interpret the ratio of cash to monthly expenses.

Understand the components and objectives of internal control systems.

Identify and apply bank statement adjustments and company book adjustments.

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Definitions:

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period of time, often used by businesses to manage cash flow and ensure liquidity.

Minimum Cash Balance

The smallest amount of cash that a company or individual aims to hold in order to meet expected and unexpected needs.

Loan Interest

The amount charged by a lender to a borrower for the use of borrowed money, calculated as a percentage of the principal.

Master Budget

A comprehensive financial planning document that consolidates all of a company's individual budgets, including sales, production, and cash budgets.