Efficient Management of Cash Includes Which of the Following Concepts

question 206

Multiple Choice

Efficient management of cash includes which of the following concepts?

• A) Pay each bill as soon as the invoice is received.
• B) Deposit all cash receipts and make all cash disbursements at the end of each week.
• C) Prepare monthly cash budgets (forecasts) up to a year in advance.
• D) Pay suppliers in cash out of cash sales receipts before depositing them in the bank.

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Definitions:

S Corporation

A type of corporation that is eligible for, and elects, special taxation status.

Shareholders

Individuals or entities that own shares in a company, giving them partial ownership and potentially a say in company decisions depending on the type of shares held.

Sole Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business entity.

Legal Structure

Pertains to the type of legal organization an entity chooses for the formation of their business, such as a corporation, partnership, limited liability company (LLC), or sole proprietorship.