Which of the Following Would Not Be a Valid Reason

question 64

Multiple Choice

Which of the following would not be a valid reason for keeping currency on hand at a place of business?

• A)To pay small,unforeseen expenses
• B)To make up for any imbalance in the books
• C)To advance money to sales reps for travel expenses
• D)To provide money for cash registers

---

Definitions:

Financial Information

Data relating to the financial health, performance, and condition of an entity, including profits, losses, assets, and liabilities.

Common Size Percentages

Financial analysis tool that expresses each line item in a financial statement as a percentage of a base figure.

Cost of Goods Sold

Direct costs attributable to the production of the goods sold by a company, including materials and labor costs.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.