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D

Financial managers broaden their definition of cash to include:
A. currency, bank deposits, stocks and bonds.
B. currency, checking deposits, undeposited checks, and bonds.
C. cash, bonds, bank deposits and short-term marketable securities.
D. currency, checking deposits, undeposited checks and short-term marketable securities.
E. None of the above.

E

Examples of cash disbursements do not include:
A. wages.
B. payment for raw materials.
C. taxes.
D. dividends.
E. sales of assets.

E

Which of the following is not an important characteristic of short-term marketable securities?
A. Maturity risk
B. Marketability
C. Taxability
D. Default risk
E. All of the above are important.

C

Marketability risk is synonymous with:
A. maturity risk.
B. default risk.
C. liquidity risk.
D. interest rate risk.
E. None of the above.

B

Which of the following money-market securities has no active secondary market?
A. Certificates of deposit (CD's)
B. Commercial paper
C. Banker's acceptances
D. Treasury bills
E. All money-market securities have active secondary markets.

B

If a firm has achieved its target cash balance the net present value is:
A. positive because the cash balance is positive.
B. zero because increasing the cash balance increases the interest cost.
C. negative because the cash balance has a financing cost.
D. positive because decreasing the cash decreases the cost of illiquidity.
E. None of the above.

B

Determining the appropriate target cash balance involves assessing the trade-off between:
A. income and diversification.
B. the benefit and cost of liquidity.
C. balance sheet strength and transaction needs.
D. All of the above.
E. None of the above.

C

The target cash balance is reached when:
A. the interest on any marketable security throw-off is maximized.
B. the interest foregone from not investing in an equivalent amount of Treasury bills is minimized.
C. the value of cash liquidity equals interest foregone on an equivalent amount of Treasury bills.
D. the liquidity value is greater than interest foregone on an equivalent amount of Treasury bills.
E. None of the above.

D

Firms would need to hold zero cash when transactions related needs are:
A. greater than cash inflows.
B. less than cash inflows.
C. not perfectly synchronized with cash inflows.
D. perfectly synchronized with cash inflows.
E. None of the above.

D

Firms hold cash to satisfy the transaction motive. This means that cash is held:
A. to meet disbursements for normal operations.
B. to balance the flow between cash inflows and outflows.
C. to make unexpected payments such as special price discounts.
D. Both A and B.
E. None of the above.

D

Firms hold cash, in part, to satisfy compensating balances. Compensating balances are:
A. cash balances held at the firm in excess of its transactions needs.
B. cash balances held at the firm that are below that of its transactions needs.
C. cash balances held at the firm in excess of its cash inflows.
D. cash balances held at commercial banks to pay implicitly for bank services.
E. None of the above.

E

In determining the firm's target cash balance, trading costs:
A. tend to fall when cash balances are large.
B. tend to rise when cash balances are large.
C. tend to rise when cash balances are low.
D. Both A and B.
E. Both A and C.

E

The cost of holding cash:
A. is the opportunity cost of lost return.
B. is zero because it is the most liquid and desirable asset.
C. increases as cash holdings increase.
D. Both A and B.
E. Both A and C.

E

A firm with low cash balances will need to borrow to cover an unexpected cash outflow:
A. if it has high cash flow variability.
B. if COGS decrease.
C. if the firm maintains a zero lower control limit.
D. Both A and B.
E. Both A and C.

B

Most large firms hold a cash balance greater than most models imply because:
A. it is too difficult to estimate the costs of security transactions.
B. banks are compensated by account balances for payment of services.
C. corporations have few bank accounts and it is difficult to manage their cash.
D. cash is costless and need not be managed closely.
E. None of the above.

A

The difference between bank cash and book cash is called:
A. float.
B. disbursement float.
C. net float.
D. collection float.
E. None of the above.

C

Checks written by the firm are said to generate:
A. collection float.
B. ledger float.
C. disbursement float.
D. book float.
E. None of the above.

D

When a firm writes a check, there is an immediate decrease in _____ cash, but no immediate change in _____ cash.
A. bank; collected
B. ledger; book
C. bank; ledger
D. book; bank
E. None of the above

C

Collection float increases:
A. disbursement float.
B. bank cash.
C. book cash.
D. gross float times net float.
E. None of the above.

B

A financial manager should be concerned about bank cash and net float, which is the sum of:
A. collection and book cash.
B. collection float and disbursement float.
C. disbursement float and book cash.
D. disbursement float and bank credit.
E. None of the above.

D

Which of the following is not true of float management?
A. Float management involves controlling the collection and disbursement of cash.
B. An objective of float management is to speed up the collection float.
C. An objective of float management is to slow down disbursement float.
D. Float management will succeed if the firm can collect late and pay early.
E. All of the above are true of float management.

B

By getting closer to the source of payment, lockboxes can be used to reduce:
A. availability or clearing float.
B. mail float.
C. in-house processing float.
D. disbursement float.
E. None of the above.

C

The most common cash management technique used to speed up collections is:
A. concentration banking.
B. wire transfers.
C. lockboxes.
D. in-house processing.
E. None of the above.

C

The fastest but most expensive way to transfer surplus funds from the local deposit bank to the concentration bank is:
A. a lockbox system.
B. a mail float system.
C. a wire transfer.
D. an in-house processing float system.
E. an availability float system.

B

Which of the following statements concerning zero balance accounts is not correct?
A. They are set up to handle disbursement activity.
B. The account has a minimum amount at all times.
C. Checks are automatically transferred into the account as checks are presented for payment.
D. The transfer is automatic and involves an accounting entry only.
E. The master and the zero balance accounts are located at the same bank.

A

Efficient funds management attempts to reduce mailing and clearing time. Two methods do this by:
A. moving collections and deposits closer together in concentration banks; and moving surplus funds quickly by wire transfers.
B. moving mailing points to cross country locations and using depository drafts to transfer funds.
C. drawing checks against zero balance accounts and using cross country mailing.
D. wiring funds to zero balance accounts and using lockboxes in many cities.
E. None of the above.

D

The major difference between a check and a draft is that:
A. the draft is not drawn on the bank but on the issuer.
B. the bank must present the draft to the firm for acceptance.
C. after acceptance of the draft the firm must deposit the funds to make payment.
D. All of the above.
E. None of the above.

D

If the total long term financing of the firm is greater than the total financing needs for part of the year, and less than the needs for some of the year due to seasonal fluctuations, the company will most likely:
A. hold excess cash.
B. borrow short term and hold excess cash.
C. hold excess cash and reduce business activities.
D. invest in marketable securities and borrow short term.
E. None of the above.

B

Adjustable rate preferred stock (ARPS) offer competitive rates of return with traditional money-market instruments but:
A. are not rated by Moody's or Standard & Poor's.
B. still provide the corporate investor with the tax exclusion on dividend income.
C. have a fixed rate of dividend income.
D. offers a highly competitive trading market.
E. None of the above.

D

Even though the dividend rate on an Adjustable-Rate Preferred Stock (ARPS) is floating to keep in line with interest rates, the instrument still suffers from risk such as:
A. a thin market causing potential principal risk and liquidity concerns.
B. the risk of downgrades from the narrow range of issuers.
C. the impact of tax law changes, which may reduce the after-tax value of the instrument.
D. All of the above.
E. None of the above.

C

Auction-Rate Preferred Stock is similar to Adjustable-Rate Preferred Stock (ARPS) in that they:
A. are both issued for 90 days.
B. have a dividend rate set by the issuer.
C. both have a floating rate and a dividend tax exclusion.
D. are equally accessible to the corporate investor directly.
E. are not similar in any manner.

D

Auction-Rate Preferred Stock has less risk factors than Adjustable-Rate Preferred Stock (ARPS) because:
A. the reset period is 49 days instead of 90.
B. the market sets the dividend level reducing principle volatility.
C. better liquidity allows corporate investors to control their investments individually.
D. All of the above.
E. None of the above.

D

Floating rate CDs differ from regular CDs in that:
A. they have longer maturity.
B. they differ substantially in default risk.
C. they are not taxed.
D. they have coupons that are frequently reset.
E. All of the above describe differences.

A

A sensible cash management policy would be to:
A. have enough cash on hand to meet ordinary course of business and some excess cash to invest in marketable securities as a precautionary measure.
B. have nearly enough cash on hand to meet ordinary course of business.
C. have enough cash on hand to meet any potential demand for cash.
D. have a zero cash balance and charge all expenditures.
E. None of the above.

A

The length of time between the acquisition of inventory and the collection of cash from receivables is called the:
A. operating cycle.
B. inventory period.
C. accounts receivable period.
D. accounts payable period.
E. cash cycle.

B

The length of time between the acquisition of inventory and its sale is called the:
A. operating cycle.
B. inventory period.
C. accounts receivable period.
D. accounts payable period.
E. cash cycle.

C

The length of time between the sale of inventory and the collection of cash from receivables is called the:
A. operating cycle.
B. inventory period.
C. accounts receivable period.
D. accounts payable period.
E. cash cycle.

D

The length of time between the acquisition of inventory by a firm and the payment by the firm for that inventory is called the:
A. operating cycle.
B. inventory period.
C. accounts receivable period.
D. accounts payable period.
E. cash cycle.

E

The length of time between the payment for inventory and the collection of cash from receivables is called the:
A. operating cycle.
B. inventory period.
C. accounts receivable period.
D. accounts payable period.
E. cash cycle.

A

Costs of the firm that rise with increased levels of investment in its current assets are called _____ costs.
A. carrying
B. shortage
C. order
D. safety
E. trading

B

Costs of the firm that fall with increased levels of investment in its current assets are called _____ costs.
A. carrying
B. shortage
C. debt
D. equity
E. payables

C

The forecast of cash receipts and disbursements for the next planning period is called a:
A. pro forma income statement.
B. statement of cash flows.
C. cash budget.
D. receivables analysis.
E. credit analysis.

D

A prearranged, short-term bank loan made on a formal or informal basis, and typically reviewed for renewal annually, is called a:
A. letter of credit.
B. cleanup loan.
C. compensating balance.
D. line of credit.
E. roll-over.

E

A prearranged credit agreement with a bank typically open for two or more years is called a:
A. letter of credit.
B. cleanup loan.
C. compensating balance.
D. line of credit.
E. revolving credit arrangement.

A

A fraction of the available credit on a loan agreement deposited by the borrower with the bank in a low or non-interest-bearing account is called a:
A. compensating balance.
B. cleanup loan.
C. letter of credit.
D. line of credit.
E. roll-over.

C

A _____ issued by a bank is a promise by that bank to make a loan if certain conditions are met.
A. compensating balance
B. cleanup loan
C. letter of credit
D. line credit
E. revolver

B

A short-term loan where the lender holds the borrower's receivables as security is called:
A. a compensating balance.
B. assigned receivables financing.
C. a letter of credit.
D. factored receivables financing.
E. a bond.

D

A type of short-term loan where the borrower sells its receivables to the lender up-front, but at a discount to face value, is called:
A. a compensating balance.
B. assigned receivables financing.
C. a letter of credit.
D. factored receivables financing.
E. a bond.

E

A short-term loan secured by the borrower's inventory, either directly or via an intermediary, is called a(n):
A. debenture.
B. line of credit.
C. banker's acceptance.
D. compensating balance.
E. inventory loan.

B

Net working capital is defined as:
A. the current assets in a business.
B. the difference between current assets and current liabilities.
C. the present value of short-term cash flows.
D. the difference between all assets and liabilities.
E. None of the above.

E

Which one of the following is a source of cash?
A. an increase in accounts receivable
B. an increase in fixed assets
C. a decrease in long-term debt
D. the payment of a cash dividend
E. an increase in accounts payable

B

Which of the following are uses of cash?
I. marketable securities are sold
II. the amount of inventory on hand is increased
III. the firm takes out a long-term bank loan
IV. payments are paid on accounts payable
A. I and III only
B. II and IV only
C. I and IV only
D. II and III only
E. II, III and IV only

E

Which one of the following will increase net working capital? Assume that the current ratio is greater than 1.0.
A. using cash to pay an accounts payable
B. uing cash to pay a long-term debt
C. selling inventory at cost
D. collecting an accounts receivable
E. using a long-term loan to buy inventory

C

Which one of the following will decrease the net working capital of a firm? Assume that the current ratio is greater than 1.0.
A. Selling inventory at a profit
B. Collecting an accounts receivable
C. Paying a payment on a long-term debt
D. Selling a fixed asset for book value
E. Paying an accounts payable

D

Which one of the following will decrease the operating cycle?
A. Paying accounts payable faster
B. Discontinuing the discount given for early payment of an accounts receivable
C. Decreasing the inventory turnover rate
D. Collecting accounts receivable faster
E. Increasing the accounts payable turnover rate

A

Which one of the following will decrease the operating cycle?
A. Decreasing the days sales in inventory
B. Decreasing the days in accounts payable
C. Decreasing the cash cycle by increasing the accounts payable period
D. Decreasing the accounts receivable turnover rate
E. Decreasing the speed at which inventory is sold

D

The short-term financial policy that a firm adopts will be reflected in:
A. the size of the firm's investment in current assets.
B. the financing of current assets.
C. the financing of fixed assets.
D. Both A and B.
E. Both A and C.

A

Which one of the following will not affect the operating cycle?
A. decreasing the payables turnover from 7 times to 6 times
B. increasing the days sales in receivables
C. decreasing the inventory turnover rate
D. increasing the average receivables balance
E. decreasing the credit repayment times for the firm's customers

D

Which one of the following will increase the cash cycle?
A. Improving the cash discounts given to customers who pay their accounts early
B. Having a larger percentage of customers paying with cash instead of credit
C. Buying less raw materials to have on hand
D. Paying your suppliers earlier to receive the discount they offer
E. Ordering raw materials inventory only when you need it

D

An increase in which one of the following will decrease the cash cycle, all else equal?
A. Payables turnover
B. Days sales in inventory
C. Operating cycle
D. Inventory turnover rate
E. Accounts receivable period

D

ABC Manufacturing historically produced products that were held in inventory until they could be sold to a customer. The firm is now changing its policy and only producing a product when it receives an actual order from a customer. All else equal, this change will:
A. increase the operating cycle.
B. lengthen the accounts receivable period.
C. shorten the accounts payable period.
D. decrease the cash cycle.
E. decrease the inventory turnover rate.

B

Which one of the following statements concerning the cash cycle is correct?
A. The cash cycle is equal to the operating cycle minus the inventory period.
B. A negative cash cycle is actually preferable to a positive cash cycle.
C. Granting credit to slower paying customers tends to decrease the cash cycle.
D. The cash cycle plus the accounts receivable period is equal to the operating cycle.
E. The most desirable cash cycle is the one that equals zero days.

A

Which one of the following statements is correct concerning the cash cycle?
A. The longer the cash cycle, the more likely a firm will need external financing.
B. Increasing the accounts payable period increases the cash cycle.
C. A positive cash cycle is preferable to a negative cash cycle.
D. The cash cycle can exceed the operating cycle if the payables period is equal to zero.
E. Adopting a more liberal accounts receivable policy will tend to decrease the cash cycle.

E

Which of the following actions will tend to decrease the inventory period?
I. discontinuing all slow-selling merchandise
II. selling obsolete inventory below cost just to get rid of it
III. buying raw materials only as they are needed in the manufacturing process
IV. producing goods on demand versus for inventory
A. I and III only
B. II and IV only
C. II, III and IV only
D. I, II and III only
E. I, II, III and IV

D

Which of the following actions will tend to decrease the accounts receivable period?
I. loosening the standards for granting credit to customers
II. increasing the discount for early payment by credit customers
III. increasing the finance charges applied to all customer balances outstanding over thirty days
IV. granting discounts for cash sales
A. I and III only
B. II and IV only
C. I, II and IV only
D. II, III and IV only
E. I, II, III and IV

B

An increase in which one of the following is most apt to be an indicator of an accounts receivable policy that is too restrictive?
A. bad debts
B. accounts receivable turnover rate
C. accounts receivable period
D. credit sales
E. operating cycle

B

If you delay paying your suppliers by an additional ten days, then:
A. your payables turnover rate will increase.
B. you will require less bank financing of your operations.
C. the cash cycle will increase by ten days.
D. your operating cycle will lengthen by ten days.
E. your stock-out costs will rise.

B

Which one of the following will increase the accounts payable period, all else constant?
A. an increase in the cost of goods sold account value
B. an increase in the ending accounts payable balance
C. an increase in the cash cycle
D. a decrease in the operating cycle
E. a decrease in the average accounts payable balance

B

Which one of the following managers is most likely in charge of establishing the accounts receivable policy?
A. Purchasing manager
B. Credit manager
C. Controller
D. Production manager
E. Payables manager

A

The manager responsible for the accounting information concerning cash flows is the:
A. controller.
B. payables manager.
C. credit manager.
D. purchasing manager.
E. production manager.

D

Flexible short-term financial policies tend to:
A. maintain low accounts receivable balances.
B. support few investments in marketable securities.
C. minimize the investment in inventory.
D. maintain large cash balances.
E. tightly restrict credit sales.

A

A restrictive short-term financial policy tends to:
A. reduce future sales more so than a flexible policy.
B. grant credit to more customers.
C. incur more carrying costs than a flexible policy does.
D. encourage credit sales over cash sales.
E. reduce order costs as compared to a more flexible policy.

C

Which of the following are associated with a restrictive short-term financial policy?
I. large investments in marketable securities
II. liberal credit terms for customers
III. minimal cash balances
IV. minimal credit sales
A. I and III only
B. II and IV only
C. III and IV only
D. I, II and III only

A

A restrictive short-term financial policy, as compared to a more flexible policy, tends to:
I. cause a firm to lose sales due to a lack of inventory on hand.
II. increase the sales of a firm due to the firm's credit availability and terms.
III. increase the probability that a firm will face a cash-out situation.
IV. increase the ability of a firm to charge premium prices.
A. I and III only
B. II and IV only
C. I and IV only
D. II and III only
E. I and II only

A

A flexible short-term financial policy:
A. is associated with firms where the carrying costs are considered to be less than the shortage costs.
B. applies mostly to firms where the shortage costs tend to be less than the carrying costs.
C. applies only to firms that strictly limit their credit sales.
D. tends to decrease the amount of current assets held by a firm.
E. is designed to utilize short-term external financing to fund all of the seasonal increases in current assets.

B

A flexible short-term financial policy:
A. increases the likelihood that a firm will face financial distress.
B. incurs an opportunity cost due to the rate of return that applies to short-term assets.
C. advocates a smaller investment in net working capital than a restrictive policy does.
D. increases the probability that a firm will earn high returns on all of its assets.
E. utilizes short-term financing to fund all of the firm's assets.

E

If your accounts receivable period is 30 days, you will collect payment for your _____ sales during the second quarter of a calendar year.
A. January and February
B. January, February and March
C. February and March
D. February, March and April
E. March, April and May

D

Your firm collects 30% of sales in the month of sale, 55% of sales in the month following the month of sale and 13% of sales in the second month following the month of sale. Given this, you will collect _____ sales during the month of June.
A. 30% of May
B. 55% of June
C. 13% of May
D. 55% of May
E. 13% of March

B

A manufacturing firm has a 90 day collection period. The firm produces seasonal merchandise and thus has the least sales during the first quarter of a year and the highest level of sales during the third quarter of a year. The firm maintains a relatively steady level of production which means that its cash disbursements are fairly equal in all quarters. The firm is most apt to face a cash-out situation in:
A. the first quarter.
B. the second quarter.
C. the third quarter.
D. the fourth quarter.
E. any quarter, equally.

D

The appropriate amount of short-term borrowing is determined by:
A. cash reserves.
B. maturity hedging.
C. relative interest rates.
D. All of the above.
E. None of the above.

B

Which two of the following four conditions are most apt to cause a quarterly cash shortfall for a firm which is financially sound?
I. a relatively constant level of sales
II. periodic expenditures for major equipment purchases
III. a steady dependence on a constant level of external financing
IV. highly seasonal sales
A. I and III only
B. II and IV only
C. III and IV only
D. I, II and III only
E. II, III and IV only

C

Which of the following statements are correct concerning the cash balance of a firm?
I. Most firms plan on maintaining a minimum cash balance at all times.
II. The cumulative cash surplus shown on a cash budget is equal to the ending cash balance plus the minimum cash balance retained by the firm.
III. The cumulative cash surplus at the end of March is used as the beginning cash balance for April when you are compiling a projected monthly cash balance report.
IV. A negative cumulative cash surplus indicates a borrowing need by the firm.
A. I and III only
B. II and IV only
C. I and IV only
D. II and III only
E. I and II only

A

A cumulative cash deficit indicates that a firm:
A. has at least a short-term need for external funding.
B. is facing long-term financial distress.
C. will go out of business within the year.
D. is capable of funding all of its needs internally.
E. is using its cash wisely.

E

The most common means of financing a temporary cash deficit is a:
A. long-term secured bank loan.
B. short-term secured bank loan.
C. short-term issue of corporate bonds.
D. long-term unsecured bank loan.
E. short-term unsecured bank loan.

B

The primary difference between a line of credit and a revolving credit arrangement is the:
A. type of collateral used to secure the loan.
B. length of the time period covered by the loan agreement.
C. fact that the line of credit is a secured loan and the revolving credit arrangement is unsecured.
D. fact that the line of credit is an unsecured loan and the revolving credit arrangement is secured.
E. line of credit is a long-term financing agreement while the revolving credit arrangement is a short-term financing agreement.

B

A compensating balance:
I. is required when a firm acquires bank financing other than a line of credit.
II. increases the cost of short-term bank financing.
III. represents an opportunity cost to the lending institution.
IV. is often used as a means of paying for banking services received.
A. I and III only
B. II and IV only
C. II and III only
D. I and IV only
E. I, II and IV only

B

With a flexible policy with regard to short term financing, over a year a firm will have:
A. some short-term borrowing.
B. some funds to invest in marketable equity securities.
C. full coverage of permanent current assets.
D. Both A and B are correct.
E. A, B and C are correct.

D

Which one of the following statements is correct?
A. A farmer generally uses a type of financing that employs trust receipts to provide financing during the growing season.
B. A third-party inventory manager is generally involved with the lender and the borrower in a floor plan arrangement.
C. A drug store is more apt to have a financing arrangement involving trust receipts than one involving a blanket lien.
D. Floor plan arrangements are most applicable to large, easily identifiable types of inventory.
E. A direct loan from a bank is generally less expensive than a loan involving commercial paper.

E

Which of the following are benefits of compiling a short-term financial plan?
I. knowing ahead of time when your firm will probably require external financing
II. being able to estimate how long of a time period your firm might need a loan
III. being able to determine when your firm can best afford to spend funds on a capital expenditure
IV. knowing when your firm should have excess funds that can be invested
A. I and III only
B. I, II and IV only
C. II, III and IV only
D. I, II and III only
E. I, II, III and IV

C

If the average accounts receivable that a firm holds decreases without any decrease in credit sales, the operating cycle will:
A. stay the same because of no sales change.
B. stay the same because cash collections are sooner, and it will affect the cash cycle only.
C. decrease because days' sales outstanding decreases.
D. stay the same because accounts receivable are not in the operating cycle.
E. have an unknown effect.

B

Which of the following is not included in current assets?
A. Accounts receivable
B. Accrued wages
C. Cash
D. Inventories
E. All of the above are included in current assets

B

Which of the following is not included in current liabilities?
A. Accounts payable
B. Prepaid insurance
C. Accrued expenses payable
D. Taxes payable
E. Notes payable

D

Assets presented on the balance sheet are in order of accounting liquidity. Accounting liquidity refers to:
A. how much inventory a brewer keeps.
B. a firm's ability to sell its product.
C. the risk of receiving payment on their accounts.
D. ability and time it takes to convert assets to cash.
E. None of the above.

C

Sources of cash do not include:
A. increases in borrowing from banks.
B. increases in cash flow.
C. decreases in accounts payable.
D. increases in notes payable.
E. increases in taxes payable.

E

A use of cash can be determined by:
A. a decrease in a liability.
B. an increase in an asset.
C. an increase in retained earnings.
D. Both B and C.
E. Both A and B.

D

The cash cycle is defined as the time between:
A. the arrival of inventory in stock and when the cash is collected from receivables.
B. selling the product and posting the accounts receivable.
C. selling the product and collecting the accounts receivable.
D. cash disbursements and cash collection.
E. the sale of inventory and cash collection.

E

Cash cycle equals:
A. inventory period plus accounts receivable period.
B. change in net working capital period.
C. operating cycle plus accounts payable period.
D. operating cycle plus inventory period.
E. None of the above.

D

Which of the following increases cash?
A. a decrease in long term debt.
B. an increase in equity.
C. an increase in current liabilities.
D. B and C.
E. A, B, and C.

E

Which of the following changes cash?
A. a decrease in fixed assets.
B. a decrease in current liabilities.
C. an increase in current liabilities.
D. A and C.
E. All of the above.

A

Which of the following decreases cash?
A. an increase in current assets other than cash.
B. a decrease in fixed assets.
C. an increase in current liabilities.
D. A and C.
E. None of the above.

E

Which of the following decreases cash?
A. a decrease in current assets other than cash.
B. a decrease in fixed assets.
C. an increase in current liabilities.
D. A and C.
E. None of the above.

D

Which of the following increases cash?
A. a decrease in current assets other than cash.
B. an increase in fixed assets.
C. an increase in current liabilities.
D. A and C.
E. None of the above.

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