The Logical (And Sometimes Illogical) Shortcuts That People Derive from Experience

question 74

Multiple Choice

The logical (and sometimes illogical) shortcuts that people derive from experience which economize on their mental capabilities are called:

• A)irrationalities.
• B)heuristics.
• C)statistical errors.
• D)probabilities.

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Definitions:

Target Cash Balance

The optimal amount of cash a company sets as a goal to maintain for operational and contingency needs.

Lockboxes

Special post office boxes set up to intercept and speed up accounts receivable payments.

Accounts Receivable

The sum of money that customers owe to a company for products or services that have been provided but not yet compensated for.

Speed Up Payments

Actions or policies implemented to reduce the time it takes to receive payments from customers, thereby improving cash flow.