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Which of the Following Are Benefits of Compiling a Short-Term

question 38

Multiple Choice

Which of the following are benefits of compiling a short-term financial plan? I.Knowing ahead of time when your firm will probably require external financing.
II) Being able to estimate how long of a time period your firm might need a loan.
III) Being able to determine when your firm can best afford to spend funds on a capital expenditure.
IV) Knowing when your firm should have excess funds that can be invested.


Definitions:

Inventories

The complete list of items such as property, goods in stock, or the contents of a building.

Accounts Payable

The amounts due by a company to its suppliers or creditors for goods and services received but not yet paid for.

Net Cash Inflow

The difference between the cash received and cash expended in a given period, resulting in an increase in cash holdings.

Financing Activities

Cash flows related to actions that alter the equity or borrowings of an entity, reflecting how a business funds its operations and investments.

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