Which Statement Best Describes Cash Management

question 45

Multiple Choice

Which statement best describes cash management?

• A)A cash management system that minimizes collections float and maximizes disbursement float is better than one with higher collections float and lower disbursement float.
• B)A cash management system that maximizes collections float and minimizes disbursement float is better than one with lower collections float and higher disbursement float.
• C)The use of a lockbox is designed to minimize cash theft losses in retail stores. If the cost of the lockbox is less than theft losses saved, then the lockbox should be installed.
• D)Other things held constant, a firm will need an identical line of credit regardless of whether it must pay its bills by the 5th of each month or pay its bills due uniformly during the month.

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Definitions:

Driving Under Influence

Operating a vehicle while impaired by alcohol or other drugs to a level that renders the driver incapable of driving safely.

Laws

Systematic rules established by society or government to regulate behavior, with the intention of maintaining order and protecting citizens' rights.

Democratic Collective Action

A form of action taken by a group of individuals who organize or unite democratically to achieve common goals or address a common issue.

Collective Action

Joint efforts by individuals or groups to achieve a common objective, often used in the context of protests, social movements, or collaborative projects.