Which of the Following Is not a Basic Principle of Cash

question 172

Multiple Choice

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

• A)Increase the collection of receivables.
• B)Keep inventory levels high.
• C)Delay payment of liabilities.
• D)Invest idle cash.

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Definitions:

Cost

The monetary value required to produce or acquire goods or services.

Competitive Firm

An individual company operating in a competitive market, where it has little to no control over the market price of its goods or services, and must accept the market price as given.

Inputs

Resources used in the production process, such as labor, capital, and materials.

Total Output

The total quantity of goods or services produced by an individual, firm, or country over a specified period.