Which of the Following Statements More Accurately Describes the Controller

question 101

Multiple Choice

Which of the following statements more accurately describes the controller than the treasurer?

• A) Likely to be the only financial executive in small firms
• B) Monitors capital expenditures to make sure that they are not misappropriated
• C) Responsible for investing the firm's spare cash
• D) Responsible for arranging any issue of common stock

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Definitions:

Current Assets

Assets that are expected to be converted into cash or used up within one year or one business cycle, whichever is longer, such as cash, inventory, and receivables.

Cash Flow To Creditors

The amount of cash a company pays to its creditors and bondholders, indicating the flow of cash intended to cover debts.

Operating Cash Flow

Operating cash flow is a measure of the cash generated by a company's normal business operations, indicating its ability to cover operating expenses and invest in its business.

Net New Borrowing

The difference between the total amount of debt a company takes on and the amount it repays within a specific period, indicating the net increase in debt.