Chapter 7 - Internal Control and Cash O Previous Page 30 of 33 Next Which of the

Question

Chapter 7 - Internal Control and Cash O Previous Page 30 of 33 Next Which of the following statements is true of days' cash on hand? O a It is a popular measure used by nonprofits to reveal how long the nonproft could survive if contributions dropped significantly b. t can be used to estimate how long a business could survive a catastrophic event o c.It is used by start up companies to measure how long cash is available to support operations until revenues begin to be earned d All of these choices are correct

Explanation / Answer

The option is D all of these choices are correct. Days cash on hand is the no of days the organisation can continue to pay the operating expenses. in case of the nonprofit organisation can survive if contribution dropped significantly, it can be used to measure or to estimate how long a business could survive a catastrophic event. it is used by start up companies to measure how long cash is available to support operations until revenues begin to be earned.

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