The Two Tools That Are Particularly Useful in Understanding the Cash

question 35

True/False

The two tools that are particularly useful in understanding the cash requirements of a business and in estimating how much financing a new business will require are the cash flow break-even analysis and the cash budget.

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Definitions:

Additional Year's Employment

The extension of an employee's service period by one year, often affecting benefits and pension calculations.

ERISA

The Employee Retirement Income Security Act of 1974, a federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to protect individuals in these plans.

Minimum Funding Requirements

Regulated benchmarks that pension plans or other forms of retirement funds must reach to ensure they have sufficient assets to meet future obligations.

Plan Assets

Investments and other assets held by a pension or retirement plan to fund the benefits promised to participants.