Which of These Is Not a Broad Principle of Cash

question 31

Multiple Choice

Which of these is not a broad principle of cash management that helps ensure that a business remains solvent?

• A) Collect cash owing from accounts receivable as quickly as possible.
• B) Pay accounts payable just before the due date rather than when the statement is first received.
• C) Buy all capital equipment on hire purchase.
• D) Invest any cash that is surplus to requirements to earn a return for the business.

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Definitions:

Primary Markets

Financial markets where new securities are issued and sold for the first time to investors, such as initial public offerings (IPOs).