When financial managers take action to minimize the carrying
costs of current assets, they:
Answer
Selected Answer: may increase costs due to shortages.
Question 2
2 out of 2 points
As for the preparation of cash budgets, capital expenditures are:
Answer
Selected Answer: included as sources of operating cash.
Question 3
2 out of 2 points
Which of the following statements about total capital requirement is
least likely to be correct for a profitable firm?
Answer
,Selected Answer: The trend is often upward-sloping.
Question 4
2 out of 2 points
Field warehousing can be an important source of:
Answer
Selected short-term financing with low risk to the
Answer: lender.
Question 5
2 out of 2 points
Which of the following is correct for a firm that reduces its
accounts receivable balance from the previous quarter?
Answer
Selected Answer: Collections exceeded sales.
Question 6
2 out of 2 points
In "field warehousing" the inventory is kept by the:
Answer
, Selected Answer: Independent warehousing company
Question 7
2 out of 2 points
Which of the following is least likely to be correct for a firm that
repeatedly stretches its payables?
Answer
Selected The firm may receive more favorable status
Answer: from suppliers due to its volume of purchases.
Question 8
2 out of 2 points
What strategy regarding long- versus short-term financing is not
being followed if managers resort to short-term investing during
downturns in the business cycle?
Answer
Selected Answer: Both b and c above
Question 9
2 out of 2 points
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