Which of These Is a Principle of Good Cash Management

question 6

Multiple Choice

Which of these is a principle of good cash management?

• A) Keeping inventory at a level where no item required by a customer is ever out of stock.
• B) Paying creditors before the due date.
• C) Investing surplus cash.
• D) Offering large cash discounts to debtors to pay within 30 days.

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Definitions:

Reliability

A measure of the consistency or repeatability of test scores or measurements over time.

Measures

Quantitative indicators or tools used to assess, count, or describe a phenomenon.

Supposed

Assumed or believed to be the case based on evidence or reasonable grounds.

Validity Evidence

Information that supports the appropriateness of the inferences made from test scores or other evaluation outcomes.