The Basic Strategies That Should Be Employed by the Business

question 9

Multiple Choice

The basic strategies that should be employed by the business firm in managing cash include all of the following EXCEPT

• A) paying accounts payable as late as possible without damaging the firm's credit rating.
• B) turning over inventory as quickly as possible, avoiding stockouts.
• C) operating in a fashion that requires maximum cash.
• D) collecting accounts receivable as quickly as possible without damaging customer rapport.

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Definitions:

Fees Earned

Income received from providing services.

Wages Expense

The total cost incurred by a business for the payment of wages to employees for a specific period.

Proprietorship

A proprietorship, also known as a sole proprietorship, is a type of business that is owned and run by one individual and where there is no legal distinction between the owner and the business entity.

Liabilities

Liabilities are financial obligations or debts that a company owes to others, to be settled over time through the transfer of economic benefits including money, goods, or services.