Which of the Following Is Not a Cash Outflow

question 8

Multiple Choice

Which of the following is not a cash outflow?

• A) Salary
• B) Rent
• C) Telephone bill
• D) Car payment

Understand the calculations involved in determining net float and the implications for cash management.

Understand methods to decrease a firm’s collection time.

Recognize the best cash management practices for firms with multiple offices and national customers.

Identify various motives for holding cash and the associated benefits.

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Definitions:

Debt-to-Equity Ratios

A financial metric used to assess a company's financial leverage, calculated by dividing its total liabilities by stockholders' equity.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

Accounts Payable

An accounting term for the amount of money a company owes to its creditors for supplies, services, or goods purchased on credit.

Balance Sheet

A financial statement that displays a company's financial position at a certain point in time, showing assets, liabilities, and shareholders' equity.