With Regard to Cash Management Systems in Practice, Studies Suggest

question 90

Multiple Choice

With regard to cash management systems in practice, studies suggest that the benefits of a multilateral netting system include

• A)the decrease in the expense associated with funds transfer, which in some cases can be over $1,000 for a large international transfer of foreign exchange.
• B)the savings in administrative time.
• C)the reduction in intra company float, which is frequently as high as five days, even for wire transfers.
• D)all of the above

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Definitions:

Summary

A brief statement or account of the main points of something, often used to provide a quick understanding or overview.

Accounting Statements

Financial reports that provide a summary of a company’s financial condition, including income statement, balance sheet, and cash flow statement.

P/E Ratios

Price-to-Earnings Ratio, a measure of a company's current share price relative to its per-share earnings.

Quick Ratio

A financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets.