Which of the Following Would Not Be of Assistance in Managing

question 49

Multiple Choice

Which of the following would not be of assistance in managing an entity's cash flow most efficiently?

• A)improving the efficiency collection of cash from debtors
• B)reducing unnecessary stock levels
• C)making use of creditor terms
• D)aiming to repay creditors in the shortest possible time,or ideally purchase everything for cash.

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Definitions:

Deferred Tax Liability

A tax obligation that arises when taxable income will be higher in future periods due to temporary differences in accounting methods.

Tax Effect

The impact financial transactions have on the amount of tax payable by an individual or corporation.

Revaluation

The process of adjusting the book value of a company's assets to reflect their current market values

OCI

Other Comprehensive Income represents gains and losses that are not included in net income on the income statement.