All of the Following Are True Regarding the Management and Monitoring

question 157

Multiple Choice

All of the following are true regarding the management and monitoring of cash except

• A)companies may have plenty of sales, but insufficient cash to support operations.
• B)the cash to cash operating cycle for a manufacturer is generally shorter than that of a merchandising company.
• C)manufacturers may experience a significant lag between the purchase of raw materials and the receipt of cash from customers.
• D)companies should have sufficient cash to meet payments but minimize the amount of non-revenue-generating cash on hand.

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Definitions:

Obtained Value

The actual value or result achieved from a statistical test or experiment.

Amortized

The process of paying off a debt through regular payments that cover both principal and interest.

Principal Balance

The outstanding amount of a loan or mortgage that remains to be paid, not including interest.

Personal Loan

A type of unsecured loan provided by financial institutions based on the borrower’s creditworthiness without collateral.