Improvements to Cash Management Include ________

question 267

Multiple Choice

Improvements to cash management include ________.

• A) a reduction in the cash turnover
• B) a reduction in the cash conversion cycle
• C) an increase in the average age of inventory
• D) an increase in the credit period allowed to customers

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Definitions:

Dividends

A portion of a company's earnings that is paid to shareholders, usually on a quarterly basis.

Common Shareholders

Individuals or entities that own a portion of a company's equity through its common shares, giving them voting rights and a claim on a portion of its profits.

Payout Ratio

The proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage of the company's total net income.

Current Dividends

Dividends that are declared and paid to shareholders out of a company's current earnings or accumulated profits.