The Financial Manager Is Interested in the Cash Inflows and Outflows

question 150

Multiple Choice

The financial manager is interested in the cash inflows and outflows of the firm, rather than the accounting data, in order to ensure

• A) the ability to acquire new assets.
• B) profitability.
• C) the ability to pay dividends.
• D) solvency.

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Definitions:

Federal Income Taxes

Taxes imposed by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Net Pay

The amount of money an employee receives after deductions such as taxes and retirement contributions are subtracted from their gross salary.

Payroll

The total amount of wages, salaries, and other compensation that a company owes to its employees for a set period.

Treasurer's Department

A division within an organization responsible for managing the institution's cash, investments, and financing activities.