Sound Cash Management Techniques Would Support

question 65

Multiple Choice

Sound cash management techniques would support

• A) maximizing collection float, minimizing disbursement float, and minimizing operating cash.
• B) minimizing collection float, maximizing disbursement float, and maximizing operating cash.
• C) minimizing collection float, maximizing disbursement float, and minimizing the cash turnover.
• D) minimizing collection float, maximizing disbursement float, and minimizing the cash conversion cycle.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowing funds, often reported on the income statement.

Closing Journal Entries

At the close of an accounting cycle, transactions are documented to move balances from provisional to fixed accounts.

Ticket Revenue

The income generated from the sale of tickets for events like concerts, movies, or transportation services.

Advertising Expense

The cost incurred to promote products or services to potential customers.