Effective Cash Management and Control Includes All of the Following

question 131

Multiple Choice

Effective cash management and control includes all of the following except

• A)the use of a petty cash fund.
• B)bank reconciliations.
• C)short-term investments of excess cash.
• D)purchase of stocks and bonds.

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Definitions:

Inferior Good

A type of good whose demand decreases when consumer income rises, unlike normal goods for which the opposite is true.

Marginal Utility

The additional satisfaction or utility gained by consuming an additional unit of a good or service.

Income Elasticity

It quantifies the sensitivity of the quantity demanded for a good to a change in consumer incomes, highlighting how demand varies as income levels shift.

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good to a change in its price.