The Cash Management Function Is Concerned with Determining

question 4

Multiple Choice

The cash management function is concerned with determining

• A)the optimal size of a firm's liquid asset balance
• B)the appropriate types and amounts of short-term investments the firm should make
• C)the most efficient methods of controlling the collection and disbursement of cash
• D)all of these answers are correct.

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Definitions:

Relevant Revenues

Revenues that directly relate to a specific business decision or activity.

Alternatives Being Considered

The different options or strategies under evaluation to address a particular issue or to achieve a specific goal.

Opportunity Cost

The cost of choosing one option over another, representing the value of the foregone alternative.

Five-Day Workweek

The standard work schedule that involves working five days per week, typically Monday through Friday, with two days off.