21. The net cash flow is equalto: (a) Income after taxes minus depreciation. (b)

Question

21.      The net cash flow is equalto:

(a)               Income after taxes minus depreciation.

(b)              Income after taxes minus dividends.

(c)               Cash receipts minus cash payments.

(d)              Cash receipts minus cash payment minus depreciation.

22.      All of the following accounts arepart of cash management except:

(a)               Cash in a checking account.

(b)              Cash in a savings account.

(c)               Cash invested in a stock mutual fund.

(d)              Cash on hand.

(e)               Petty cash.

2

(a)               Consist of government securities only.

(b)              Normally pay a higher rate of interest than checking accounts.

(c)               Never require an investment strategy.

(d)              Never offer any risk.

24.      The goal of accounts receivable managementis to:

(a)               Collect money as fast as possible.

(b)              Give credit to every customer.

(c)               Have a department of its own in a company.

(d)              Increase sales by offering credit to customers.

2

Explanation / Answer

21.   C    Cash receipts minus cashpayments 22. E Petty cash 23. B     Normally pay a higher rate ofinterest than checking accounts. 24.   D    Increases sales by offeringcredit to customers.

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