Which of the Following Practices Contributes to Efficient Cash Management

question 164

Multiple Choice

Which of the following practices contributes to efficient cash management?

• A) Never borrow money-maintain a cash balance sufficient to make all necessary payments.
• B) Record all cash receipts and cash payments at the end of the month when reconciling the bank statements.
• C) Prepare monthly forecasts of planned cash receipts, payments and anticipated cash balances up to a year in advance.
• D) Pay each bill as soon as the invoice arrives.

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Definitions:

Coordinators

Individuals or roles designated to organize, schedule, and manage activities and resources to ensure efficient operation and achievement of goals.

Structured

Organized and planned in a clear, systematic way, often involving a specific format or arrangement.

Social Context

The environmental, cultural, and interpersonal factors that influence individuals and interactions in society.

Professionalism

The competence or skill expected of a professional, including adherence to ethical standards.