Tài Chính Doanh Nghiệp 1

The total time of the cash collection process is:

• Mailing time, mail receiving time, processing delay

• Mailing time, processing delay, availability delay

• Mailing time, availability delay, processing delay

• The sentences are all wrong

What is the float?

• The amout of money you have according to your checkbook

• The difference between the available balance the ledger balance

• Checks written by a firm

• Both A&C

Concentration banking helps in:

• Managing cash receipts

• Forecasting the minimum cash balance.

• Managing cash disbursements

• Forecasting the accounts payables

How many methods are there to transfer money to a concentration bank?

• 2

• 4

• 3

• 5

What is Investing Idle Cash?

• This is one of the most popular ways to make money

• This is a popular investment channel of idle money, chosen by many people

• This is the most profitable investment channel for idle money today.

• This is a purchase of a certain type of property when you have a surplus of money that has not been used for any purpose.

Cash is often referred to as a nonearning asset. Thus, one goal of cash management is to minimize the amount of cash necessary to conduct business

• True

• False

………………the need to have cash available to pay bills. Transaction-related needs stem from the company's normal payments and collection activities

• Speculative motive

• Precautionary motive

• Transaction motive

• Compensating balance

Indicate which of the following statements is not true?

• The higher the default risk, the higher the bond’s yield

• Bonds sold for above par are of very high quality

• The less liquid the bond, the higher the yield

• Corporate bonds have a higher yield than government bonds

In 2010, many large companies in the world increased the ratio of cash and stock reserves to ease transform dramatically. The reasons for this sudden increase in this asset class at these big companies are:

• The cash sales of these companies increased

• The cash sales of these companies decreased.

• Businesses reserve to respond to unusual fluctuations from the economic crisis.

• None of the answers are available.

Suppose you mail a check for $1000 to another state each month. It takes six days in the mail for the check to reach its destination (the mailing time) and one day for the recipient to get over to the bank (the processing delay). The recipient’s bank holds out-of-state checks for two days (availability delay). The total delay? The average daily float? ( a month have 30 days)

• 9 days, $300

• 30 days, $900

• 9 days, $30

• 3 days, $90

Answer explanation

Toal delay=6+1+2=9

Toal float=9*1000=9000

Avarage =9000/30=300