Which of the Following Practices Best Illustrates Efficient Management of Cash

question 63

Multiple Choice

Which of the following practices best illustrates efficient management of cash?

• A)The accountant records all cash receipts and payments when reconciling the bank account at the end of each month.
• B)Management arranges for a loan to cover projected cash shortages during the production phase of the business cycle each year.
• C)Cash budgets (forecasts)are prepared only one month in advance in order to avoid the need for constant revision.
• D)All cash resources are held in the checking account to maximize liquidity.

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Definitions:

Social Welfare

A system that provides assistance to needy individuals and families in a society through various forms of financial aid, health care, and social services.

Sherman Antitrust Act

A landmark federal statute passed in 1890 aimed at promoting economic competition by prohibiting monopolies and other activities that restrict trade.

Congress

The bicameral legislature of the federal government of the United States, consisting of two chambers: the Senate and the House of Representatives.

Antitrust Laws

Legislation enacted to prevent new monopolies from forming, break up those that already exist, and regulate anti-competitive practices that may harm the market or consumers.