One of the First Considerations in Cash Management Is

question 44

Multiple Choice

One of the first considerations in cash management is

• A) to have as much cash as possible on hand.
• B) synchronization of cash inflows and cash outflows.
• C) profitability.
• D) to put any excess cash into accounts receivable.

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Definitions:

Salvage Value

The estimated residual value of an asset at the end of its useful life.

Cash Break-Even

The point at which a business's cash inflows equal its cash outflows, excluding financing or investment income.

Straight-Line Depreciation

An operation for dividing up the expense of a tangible asset throughout its active life in uniform annual totals.

Required Rate of Return

This refers to the minimum expected yield by investors to compensate for the risk of the investment.