For Efficiency of Operations and Better Control Over Cash, a Company

question 180

True/False

For efficiency of operations and better control over cash, a company should maintain only one bank account.

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Definitions:

Natural Resource

Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.

Depreciable Asset

An asset that loses value over time due to usage, wear and tear, or obsolescence, which can be an expense on the income statement over its useful life.

Fixed Asset

A long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income.

Intangible

Assets that lack physical substance but hold value for a firm, such as patents, trademarks, and goodwill.