Good Financial Managers Minimize the Amount of Cash Available to Pay

question 61

Multiple Choice

Good financial managers minimize the amount of cash available to pay bills in

• A) marketable securities.
• B) transaction balances.
• C) inventory.
• D) the float.
• E) banker's acceptances.

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Definitions:

Market-to-Book Ratio

A financial valuation metric comparing a company's current market price to its book value.

Common-Size Statement

A financial statement that presents all line items as a percentage of a common base figure, facilitating comparison across different periods or companies.

Net Fixed Assets

The total value of a company's physical assets (like machinery, buildings, equipment) minus depreciation, indicating the net book value of physical assets.

Net Income

A business's residual profit after all operational costs and tax charges are extracted from its total revenues.