Which of the Following Is True About Managing Cash Flow

question 50

Multiple Choice

Which of the following is true about managing cash flow?

• A) The project manager prefers to keep the company's money working in other investments until the last moment before transferring it to the project account.
• B) If estimates are rarely exceeded, the estimating method need not be reviewed.
• C) Occurrences that increase costs above the original estimates are uncommon in projects.
• D) Instead of underestimating each cost, money is budgeted for dealing with planned but statistically unpredictable cost increases.
• E) It is not possible to predict which activities cost more than expected but it is reasonable to assume that some of them will be.

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Definitions:

Indorsee

A person to whom a negotiable instrument is transferred by indorsement.

Payable

Financial obligations or monies that are due to be paid to creditors or suppliers.

HDC (Holder in Due Course)

A party possessing a negotiable instrument, like a check, who has taken it in good faith and for value, and thus has certain protections.

Negotiable Instrument

A legal document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the transferable right to receive the payment.