What Recommendations Would You Give Christopher Concerning His Cash Management

question 9

Multiple Choice

What recommendations would you give Christopher concerning his cash management?

• A)Create a budget and set some savings goals.
• B)Automate a savings plan using EFT.
• C)Set up an account at a mutual fund company.
• D)All of the above are good recommendations.
• E)All of the above except C are good recommendations.

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Definitions:

FOB Destination

A shipping term where the seller is responsible for the delivery of goods to a specific destination, absorbing all costs and risks until the goods are received by the buyer.

Perpetual Inventory System

A method of inventory management where updates to inventory records are made continuously as transactions occur.

Net Price Method

An accounting method where discounts are not recorded in the accounting records; instead, purchases are recorded at the net purchase price.

Exchange Rates

The price of one country's currency in terms of another currency, which determines how much foreign currency one can buy with a unit of domestic currency.