Which of the Following Are Benefits Derived from Short-Term Financial

question 1

Multiple Choice

Which of the following are benefits derived from short-term financial planning?
I.having advance notice of when your firm will require external financing
II.being able to determine the extent of time for which a loan is required
III.having the ability to time capital expenditures in order to place the least financial burden possible on a firm
IV.knowing for certain what your cash balance will be six months in advance

• A)I and III only
• B)I, II, and III only
• C)II, III, and IV only
• D)I, II, and IV only
• E)I, II, III, and IV

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Definitions:

Administrative Expense

Expenses that are not directly tied to the production or selling of goods and services, such as salaries of senior executives and costs of general services.

Period Cost

Costs that are not directly tied to the production process and are expensed in the period they are incurred, such as selling and administrative expenses.

FIFO Cost Flow

An inventory valuation method where the oldest inventory items are recorded as sold first, leaving the newest items in inventory.

Finished Goods Inventory

Finished Goods Inventory consists of the completed products that are ready for sale but have not yet been sold, representing one of the components of a company's total inventory.