Which of the Following Is a Principle of Good Cash

question 6

Multiple Choice

Which of the following is a principle of good cash management?

• A) Investing surplus cash.
• B) Keeping inventory at a level where no item required by a customer is ever out of stock.
• C) Paying creditors before the due date.
• D) Offering large cash discounts to debtors to pay within 30 days.

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Definitions:

Consolidations

The process of combining two or more entities into one, in terms of financial statements, companies, or assets.

Joining of the Businesses

The joining of the businesses typically refers to the process where two or more companies come together to form a partnership, merger, or acquisition, combining resources for shared goals.

Skateboards

A narrow plank of wood mounted on wheels, used for recreational activity and transportation, typically steered by a rider's balance.

Consolidation

Consolidation refers to the process of combining several smaller entities, debts, or accounts into a single, more comprehensive unit for management efficiency.