Which of the Following Is Not a Basic Objective of Cash

question 107

Multiple Choice

Which of the following is not a basic objective of cash management?

• A) Provide accurate accounting for cash transactions.
• B) Prevent or minimize theft or fraud.
• C) Anticipate the need to borrow cash.
• D) All three of the above are basic objectives of cash management.

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Definitions:

Stock Price

The current price at which a share of a company is traded on the stock market.

Optimal Capital Structures

The best mix of debt, equity, and other financial instruments that minimizes the cost of capital for a company while maximizing its value.

Financial Leverage

The use of borrowed funds to increase the potential return of an investment, which also increases the risk of loss.

EPS

Earnings Per Share, a financial ratio that indicates the portion of a company's profit allocated to each outstanding share of common stock.