Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Chapter 4, Problem 14MCQ
To determine
Introduction: Cash management control is very important for business day to day transaction, because in the normal days company purchase the raw material, salary payment, factory rent payment like other normal transaction. Company need cash on the daily basic.
To choose: What is not include in the cash management principal.
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Cash management principles do not include:
a.paying suppliers promptly.
b.speeding up collection from customers.
c.delaying payment of suppliers.
d.earning the greatest return possible on excess cash.
Which of the following is not a basic principle of cash management?
Keep inventory levels high.
Invest idle cash.
Increase the collection of receivables.
Delay payment of liabilities.
Determine whether each policy below is good or bad cash management, then identify the cash management strategy violated or followed for each policy.
1. The company negotiates credit terms with suppliers to delay payment of liabilities as long as possible
2. Excess cash is put in checking accounts, earning no interest income.
3. Cash receipts and cash payments are regularly planned and reviewed.
4. Customers are offered discounts to pay early.
5. All equipment is purchased, even equipment infrequently used.
Good or Bad
Cash Management Strategy
Chapter 4 Solutions
Cornerstones of Financial Accounting
Ch. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - The Sarbanes-Oxley Act increased top managements...Ch. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQ
Ch. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 16DQCh. 4 - Prob. 17DQCh. 4 - Prob. 18DQCh. 4 - Prob. 19DQCh. 4 - Prob. 20DQCh. 4 - Prob. 21DQCh. 4 - Prob. 22DQCh. 4 - Prob. 1MCQCh. 4 - Prob. 2MCQCh. 4 - Which of the following is not one of the five...Ch. 4 - Prob. 4MCQCh. 4 - The internal audit function is part of what...Ch. 4 - Prob. 6MCQCh. 4 - Prob. 7MCQCh. 4 - Prob. 8MCQCh. 4 - Which one of the following would not appear on a...Ch. 4 - Prob. 10MCQCh. 4 - Prob. 11MCQCh. 4 - Prob. 12MCQCh. 4 - Prob. 13MCQCh. 4 - Prob. 14MCQCh. 4 - Prob. 15MCQCh. 4 - Prob. 16CECh. 4 - Prob. 17CECh. 4 - Cornerstone Exercise 4-18 Adjusting Entry from...Ch. 4 - Prob. 19CECh. 4 - Prob. 20CECh. 4 - Cornerstone Exercise 4-21 Cash Over and Short On a...Ch. 4 - Cornerstone Exercise 4-22 Cash Over and Short...Ch. 4 - Prob. 23CECh. 4 - Prob. 24CECh. 4 - Prob. 25BECh. 4 - Prob. 26BECh. 4 - Prob. 27BECh. 4 - Prob. 28BECh. 4 - Prob. 29BECh. 4 - Prob. 30BECh. 4 - Prob. 31BECh. 4 - Prob. 32BECh. 4 - Prob. 33BECh. 4 - Prob. 34BECh. 4 - Prob. 35BECh. 4 - Prob. 36BECh. 4 - Prob. 37BECh. 4 - Prob. 38BECh. 4 - Prob. 39ECh. 4 - Prob. 40ECh. 4 - Prob. 41ECh. 4 - Prob. 42ECh. 4 - Miller Enterprises deposits the cash received...Ch. 4 - Prob. 44ECh. 4 - Prob. 45ECh. 4 - Prob. 46ECh. 4 - Prob. 47ECh. 4 - Hawk Enterprises identified the following items on...Ch. 4 - Prob. 49ECh. 4 - Prob. 50ECh. 4 - Prob. 51ECh. 4 - Prob. 52ECh. 4 - Prob. 53ECh. 4 - Exercise 4-54 Operating Cycle and Current...Ch. 4 - Prob. 55APSACh. 4 - Prob. 56APSACh. 4 - Prob. 57APSACh. 4 - Prob. 58APSACh. 4 - Prob. 59APSACh. 4 - Prob. 60APSACh. 4 - Prob. 61APSACh. 4 - Prob. 55BPSBCh. 4 - Prob. 56BPSBCh. 4 - Prob. 57BPSBCh. 4 - Prob. 58BPSBCh. 4 - Prob. 59BPSBCh. 4 - Prob. 60BPSBCh. 4 - Prob. 61BPSBCh. 4 - Prob. 62.1CCh. 4 - Prob. 62.2CCh. 4 - Prob. 62.3CCh. 4 - Prob. 62.4CCh. 4 - Prob. 63.1CCh. 4 - Prob. 63.2CCh. 4 - Prob. 64.1CCh. 4 - Prob. 64.2CCh. 4 - Prob. 65CCh. 4 - Prob. 66.1CCh. 4 - Prob. 66.2CCh. 4 - Prob. 67.1CCh. 4 - Prob. 67.2CCh. 4 - Prob. 68.1CCh. 4 - Prob. 68.2CCh. 4 - Prob. 68.3CCh. 4 - Prob. 68.4CCh. 4 - Prob. 69.1CCh. 4 - Prob. 69.2CCh. 4 - Prob. 69.3CCh. 4 - Prob. 69.4CCh. 4 - Case 4-70 CONTINUING PROBLEM: FRONT ROW...Ch. 4 - Prob. 70.2CCh. 4 - Prob. 70.3CCh. 4 - Prob. 70.4C
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- The term Cash Management refers to the day-to-day administration of managing cash inflows and outflows. Because of the multitude of cash transactions on a daily basis, they must be managed. The ultimate goal of cash management is to maximize liquidity and minimize the cost of funds and it is extremely crucial for any organization as mismanagement can lead to financial distress. This impacts future growth for the company. Maintaining cash balances while earning a return on idle cash are also top concerns.Cash management allows estimating the cash profits and not just profits from outstanding incomes and credit sales. It helps in detecting cash embezzlement. It allows in speeding up the working capital cycle. It helps in rewarding such debtors that make quicker payments.Discuss in detail the services generally offered by banks under the Cash management services arrangement.arrow_forwardThe percentage of accounts receivable that is uncollectible can be ignored for cashbudgeting becausea. no cash is received from an account that defaults.b. it is included in cash sales.c. it appears on the budgeted income statement.d. for most companies, it is not a material amount.e. None of these.arrow_forwardA company is expecting a temporary negative cash flow. Discuss the benefits of funding the deficit by arranging an overdraft facility with its bankarrow_forward
- It is evident that cash is not being controlled well in the business. Identify twoproblems and provide advice to the owner as to how these problems can be avoidedin future.arrow_forwardeffects of cash restriction regulations on management of customer banking practicesarrow_forwardWith good internal controls, the person who handles cash can also Account for cash payments. Account for cash receipts from customers. Issue credits to customers for sales returns. None of the abovearrow_forward
- Which among the following is not recommended for solving cash problems of a business? a.Arrange for overdraft facilities in case a shortage is forecasted b.Allowing extra time to customers to pay off bills so as to boost the sales. c.Finding a cheaper source of supply of raw materials d.Disposing off assets that are not being put to effective usearrow_forwardAfter removing the Change Fund, a cash shortage exists if: a.the Petty Cash Fund is greater than the Change Fund. b.the Change Fund is greater than the Petty Cash Fund. c.the day's receipts are greater than the register reading. d.the day's receipts are less than the register reading.arrow_forwardAnswer the following questions about internal control over cash payments:1. Payment by check includes three controls over cash. What are they?2. Suppose a purchasing agent receives the goods that she purchases and also approves payment for those goods. How could a dishonest purchasing agent cheat the company? Howdo companies avoid this internal control weakness?arrow_forward
- The establishment and usage of a zero-balance account in relation to the cash management strategies of a firm generally decreases all except one a. any excess bank balance b. processing time c. any disbursement float d. the annual cost of casharrow_forwardHigh level cash management strategies include a.petty cash b.delaying payment for suppliers c.cash over and short d.bank reconciliationsarrow_forwardApplying internal control over cash payments by check A purchasing agent for Franklin Office Supplies receives the goods that he purchases and also approves payment for the goods. Requirements How could this purchasing agent cheat his company? How could Franklin avoid this internal control weakness?arrow_forward
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