Relative to Minimizing Inventory Investment,minimizing Bank Balances,and Slowing Payment on Payables,surveyed

question 12

Multiple Choice

Relative to minimizing inventory investment,minimizing bank balances,and slowing payment on payables,surveyed financial executives believed speeding collection of receivables to be ______________________ as a recommended short-term financial management strategy.

• A)more important
• B)equally important
• C)less important
• D)of almost no importance

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Definitions:

Asset Recognition

The process in accounting to acknowledge and report an item as an asset on the balance sheet provided it meets certain criteria.

Residual Value

The estimated value that an asset will realize upon its sale at the end of its useful life.

Material Amount

A sum of money that is large enough to influence the economic decisions of users based on the financial statements of an entity.

Reporting Period

The specific time span covered by financial statements, typically one fiscal year or quarter, for which an entity reports its financial performance and position.