One Way a Firm Can Reduce the Amount of Cash

question 82

Multiple Choice

One way a firm can reduce the amount of cash it needs in any one month is to

• A) slow down the payment of receivables.
• B) delay the payment of wages.
• C) accrue taxes.
• D) speed up payment of accounts payable.

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Definitions:

Perfectly Elastic Demand

The case in which any price increase will cause the quantity demanded to drop to zero; the demand curve is a horizontal line.

Demand Curves

Graphical representations showing the quantity of a particular good that consumers are willing to buy at different price levels, assuming other factors remain constant.

Total Revenue

The total amount of money a company receives from selling its goods or services, calculated as the quantity sold multiplied by the sale price.

Perfectly Price-inelastic

A situation where the quantity demanded or supplied of a good does not change in response to a price change.