The "Big Three" of Cash Management Include

question 88

Multiple Choice

The "big three" of cash management include:

• A)accounts receivable,overhead,and inventory.
• B)accounts payable,accounts receivable,and taxes.
• C)accounts receivable,accounts payable,and inventory.
• D)accounts receivable,prices,and expenses.

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Definitions:

Units-of-production Method

A method of depreciation that allocates the cost of an asset based on its usage, production, or units of activity rather than the passage of time.

Passage of Time

Refers to the progression of time and its implications, often related to depreciation, amortization, and other time-sensitive accounting practices.

Ignores Salvage Value

This term refers to the accounting practice where the potential residual value of an asset at the end of its useful life is not considered in depreciation calculations.

Straight-line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its expected useful life.