Which of the Following Is Not a Basic Principle of Cash

question 119

Multiple Choice

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

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

---

Definitions:

Own Capital

The personal funds contributed by the owners or shareholders to a business for startup or expansion, representing equity in the firm.

Operating Profit

The profit earned from a firm's normal core business operations.

Assistant's Salary

refers to the compensation provided to an assistant, which can vary depending on the field of work, job responsibilities, and experience level.

Accounting Profit

The financial gain calculated by subtracting total expenses from total revenues, according to standard accounting practices.