One Way a Firm Can Reduce the Amount of Cash

question 93

Multiple Choice

One way a firm can reduce the amount of cash it needs in any one month is to

• A) slow down the payment of receivables
• B) delay the payment of wages
• C) speed up the payment of taxes
• D) speed up the payment of wages

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Definitions:

Property Tax Expense

The cost incurred from taxes imposed on property owned by individuals or businesses based on the assessed value of the property.

Interest Due

The amount of interest that has been incurred on a loan or debt but has not yet been paid.

Adjusting Entries

Adjusting entries are journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Loan Repay

Loan repayment is the act of paying back borrowed funds to the lender, typically in installments that include both principal and interest.