Collier Company Has Implemented a Just-In-Time System, Which Relies on Suppliers

question 81

Multiple Choice

Collier Company has implemented a just-in-time system, which relies on suppliers to deliver goods for resale as needed.This implementation is most consistent with which of the following basic principles of cash management?

• A)Increasing the speed of receivables collection.
• B)Planning the timing of major expenditures.
• C)Keeping inventory levels low.
• D)Delaying the payment of liabilities.

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Definitions:

Stock Market

A marketplace where shares of public companies are bought and sold, affecting company capital and investor wealth.

Additional Paid-In Capital

The amount of money investors have paid for shares above the nominal value, reflecting the excess paid over the stated par value of the shares.

Retained Earnings

The portion of net income that is retained by a company rather than distributed to its shareholders as dividends, often used for reinvestment.

Market-to-Book Value

A ratio used to compare a company's current market price to its book value, indicating how highly the market values the company relative to its actual assets.