Cash Management Involves the Determination of the _____

question 70

Multiple Choice

Cash management involves the determination of the _____.

• A) minimal size of a firm's asset balance
• B) maximum amount of dividends that should be paid
• C) optimal size of a firm's liquid asset balance
• D) range of long-term financial alternatives

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Definitions:

Double Declining-balance

An accelerated depreciation method that counts the expense twice as fast as the straight-line method, reducing the value of an asset more quickly.

Net Income

The amount of profit left after all expenses, taxes, and costs are subtracted from a company’s total revenue; synonymous with net profit.

Tax Purposes

Describes the reasoning or intention behind financial decisions or calculations made to comply with tax laws and regulations.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting its consumption or loss of value over time.