Which of the Following Is not a Basic Principle of Cash

question 107

Multiple Choice

Which of the following is not a basic principle of cash management?

• A)Increase the speed of collection on receivables.
• B)Maintain idle cash.
• C)Keep inventory levels low.
• D)Delay payment of liabilities.

---

Definitions:

Annual Fixed Cost

The total of all business expenses that remain constant regardless of any change in production levels or sales volume over a year.

Total Output

The aggregate quantity of goods or services produced by an economy, sector, or production process over a specific period.

Barbershop

A place of business where people, typically men, go to get haircuts and often beard trims or shaves.

Average Total Cost

The total cost of production divided by the quantity produced, including both fixed and variable costs, representing the per unit cost of production.