Which of These Is a Principle of Good Cash Management

question 6

Multiple Choice

Which of these is a principle of good cash management?

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

Identify and understand tasks associated with the Vendors section in QuickBooks and their purposes.

Understand the process for recording services and inventory purchases in QuickBooks, including the appropriate windows and transaction types.

Comprehend how QuickBooks tracks financial transactions, including the effects of entering and paying bills on accounts.

Recognize the purpose and use of various vendor-related reports and documents in QuickBooks, including aging reports and Form 1099.

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Definitions:

Average IRR

The mean internal rate of return, calculating the average profitability of investments or projects over time.

Pre-Tax Cost

The expense incurred by an organization or individual before taxes have been deducted.

After-Tax Cost of Capital

The net cost of capital to a company after accounting for the tax benefits associated with debt financing.

Oil Exploration

The process of searching for underground or underwater oil reservoirs to extract petroleum for commercial use.