Depository Bank Accounts Are an Efficient Way to Manage Cash

question 49

Multiple Choice

Depository bank accounts are an efficient way to manage cash since:

• A) the treasurer is the only person authorized to perform the bank reconciliation on this type of account.
• B) dual signatures are needed for all withdrawals.
• C) corporate headquarters can quickly transfer the money to the company's centralized account.
• D) the account earns a high rate of interest.

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Definitions:

Company's Potential

The capacity or capability of a company to achieve future growth, success, or profitability.

Industry

Refers to the production of goods or related services within an economy, characterized by the specific sector or type of business.

Economic Health

The condition of an economy, often assessed through indicators such as GDP growth, unemployment rates, and inflation, reflecting overall prosperity and stability.

Convertible Debt

A form of short-term borrowing that can be converted into equity, typically by a private company or startup.