Which of the Following Is Not a Basic Principle of Cash

question 10

Multiple Choice

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

• A) Increase collection of receivables.
• B) Keep inventory levels low.
• C) Pay all liabilities early.
• D) Invest idle cash.

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Definitions:

Yield To Maturity

The expected total yield from a bond assuming it is retained until the end of its term, accounting for all interest earnings and the return of the initial investment.

Market Yield

The current annual income return of an investment divided by the present market price.

Zero-Coupon Bonds

Bonds that do not pay periodic interest payments and are sold at a discount from their face value.

Market Price

The current price at which an asset or service can be bought or sold on the open market.