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:

Financial Position

Represents the net worth of an entity, detailing assets, liabilities, and shareholders' equity at a specific point in time.

Assignable Loan Contract

A loan agreement that allows the lender to transfer or assign the loan to another party.

Finance Company

A financial institution that offers loans, leases, and other financial services to consumers and businesses.

Conditional Sales Contract

An agreement for the purchase of goods that does not fully transfer ownership to the buyer until certain conditions, typically full payment, have been met.