Which Statement Is True About Businesses with a Cash Culture

question 66

Multiple Choice

Which statement is true about businesses with a cash culture?

• A)Cash policies are not their first priority.
• B)They are less likely to have good vendor terms.
• C)Their metrics are murky.
• D)They need less working capital.

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Definitions:

Fully Depreciated

The status of an asset after its cost has been completely written off over its useful life.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated as depreciation expense since the asset was put into use.

Equipment

Tangible assets used in the operation of a business to produce goods or provide services, not intended for sale.

Revenue Expenditure

Costs that are expensed in the income statement in the period in which they are incurred, typically related to the day-to-day operating expenses.