One of the First Considerations in Cash Management Is

question 44

Multiple Choice

One of the first considerations in cash management is

• A) to have as much cash as possible on hand.
• B) synchronization of cash inflows and cash outflows.
• C) profitability.
• D) to put any excess cash into accounts receivable.

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Definitions:

Economy

The system by which goods and services are produced, distributed, and consumed within a society or area.

Depression of the 1930s

A severe worldwide economic downturn that lasted throughout the 1930s, marked by significant declines in industrial production, widespread unemployment, and deflation.

Recession

A temporary stage of economic depletion, highlighted by a downturn in trade and industrial action, normally identified by a GDP reduction in two back-to-back quarters.

Stagflation

A situation in the economy where inflation and unemployment rates are high simultaneously, leading to slow economic growth.