An objective of cash management is to
Q: Discuss the cash management model of William Baumol
A: Cash management is the process of collecting, processing, controlling, and investing an…
Q: Essay 3: Explain the relationship between cashflow volatility and organizational capital?
A: Rather than Frank and Goyal (2009), we find that income instability has a huge adverse consequence…
Q: xplain the functioning of factoring. How does a company selling its receivables benefit?
A: A factor, or considering organization, purchases other firms' records receivable. The factor…
Q: A short-term promissory note issued by largecorporations is known asa. debenture agreement.b. equity…
A: A short-term promissory note issued by largecorporations is a written agreement which is between the…
Q: Why would an employer encourage an employee to take advantage of payroll direct deposit? Why would…
A: The term direct deposit means the direct transfer of funds electronically from one bank account to…
Q: The following are examples of debt financing EXCEPT: Taking a loan from a family member Taking a…
A: Debt financing is when a business borrows money with the intention of repaying it with interest at a…
Q: Factoring of accounts receivable typically is the highest cost method of short-term financing.; True…
A: Yes its true Accounts receivable (AR) financing is a type of financing arrangement in which a…
Q: Analyze and explain the quatation of Abraham Briloff "Financial statements are like fine perfumes,…
A: Financial statements are like a fine perfume, to be sniffed but not swallowed.
Q: Marketable securities can be converted into cash in a matter of days.; True or False
A: Answer- Yes its true! Marketable securities are liquid financial instruments that can be quickly…
Q: elivering cash or another financial asset.
A: Answer is - B
Q: Identify the major financial statements, and explainhow to read a balance shee
A: Financial statements can be defined as records that give us an idea of how the business activities…
Q: What’s the difference between a conditional and an unconditional cash-transferprogram?
A: Cash Transfer is a form of direct monetary payment to a specific person. Cash transfers include two…
Q: The FDIC traditionally protects depositors up to $250,000 per account. True or False True False
A: Correct Answer is True.
Q: It is less common to confirm accounts payable at an interim datethan accounts receivable. Explain…
A: It is less likely to assure the accounts payable at an interim date than accounts receivable because…
Q: Discuss ANY TWO (2) strengths of the discounted cash flow method
A: Discounted cash flows Methods: Another strategy for registering expected paces of return is the…
Q: Brands such as because: a. These assets increase mental and physical availability O b. These assets…
A: Market based assets is an integral part of any company. As a consequence of this, many companies…
Q: management on effective cash management.
A: Effective cash management requires cash planning, cash flow management, cash control, and…
Q: During the audit of Albert Eistein, what relevant assertion should be used to record loans…
A: Definitions for the assertions: Existence or occurrence: This is a transaction assertion meaning…
Q: Explain the profitability-risk trade-off of alternative methods of financing a given working capital…
A: Liquidity and profitability trade-offs have turned into a vital issue among any organization.it is…
Q: Explain the process of factoring. What is the value of factoring to a company that sells its…
A: When an enterprise buys debt from another enterprise, it is called factoring. It is in two kinds,…
Q: Which of the following is the most liquid form of current assets a. Inventory b. Accounts Payable c.…
A: Liquid assets are assets that may be easily converted into cash or are in the form of cash. It helps…
Q: Explain how cash flow hedge accounting allows gain and losses to be recorded in a variety of places…
A: A cash flow hedge is a hedge of the exposure to variability in the cash flows of a specific asset or…
Q: Investment X offers to pay you $4,500 per year for nine years, whereas Investment Y offers to pay…
A: The timelines are: To find the PVA, we use the equation: PVA = C({1 – [1/(1 + r)]^t } / r )
Q: Explain the meaning of the term Annuities by providing examples
A: Annuities are financial products that enable people secure a steady stream of income even during…
Q: Why would a lender offer unsecured short-term loans when it could demand collateral?
A: There are two types of loans in businesses- Secured business loans, which need some collateral for…
Q: For a business firm, what type of activities does financial management involve?
A: Financial management is the process of planning, organizing, and monitoring financial resources.…
Q: Some of the cash flow elements are estimated in constant dollars, and othersare estimated in actual…
A: The answer is True.
Q: Define a Company. Explain its features and also explain advantages and disadvantages of forming a…
A: Define a Company. Explain its features and also explain advantages and disadvantages of forming a…
Q: A government company created an account for strategic purposes (to help in facing the…
A: ANSWER: Amount = A Interest rate = i n = number of years
Q: Long-term debt typically describes اخترأحد الخيارات a. debt with a maturity greater than one O .year…
A: The correct option is a, that is debt with a maturity greater than one year. Long term debt…
Q: What are the concerns in cash management, and how do cash management ISs help financial managers?
A: The process of collecting and managing cash flow from a company's operating, investing and financial…
Q: Summarize two concerns regarding cash balance plans.
A: Cash-balance plans The cash-balance plan refers to the pension plans where the employees’ account is…
Q: Describe how the time value of money impacts the terms of a business loan.
A: One of the important decisions which the financial manager has to take is to consider the concept of…
Q: Explain how factoring works. Of what benefit is factoring to a firm that sells its receivables?
A: When a company purchases debt from another company, it is known as factoring. It is of two types,…
Q: What is Cash and cash equivalents ?
A: Cash and cash equivalents are items listed on the company's balance sheet. They offer a high level…
Q: what accounting principle is observed in computing a depreciation? *
A: Accounting principles are the guidelines that companies must follow when writing any financial…
Q: A mutual fund that invest in a mix of equity and fixed income securities that provide current cash…
A: A mutual fund that invest in a mix of equity and fixed income securities that provide current cash…
Q: All cash flow elements are estimated in constant dollars. True or false?
A: True.
Q: Explain the concept and scope of Managerial Accounting together with its functions with example.
A: The management of the financial resources is an essential activity of an organization. Financial…
Q: All of the following are part of the current account EXCEPT ________.
A: In the Balance of Payments computation for a country, its current account balance includes trade…
Q: Anna bought a bond with a par value of $10,000 and a coupon rate of 8% at par. After a year, she was…
A: The annual income (interest or dividends) from an investment is divided by the security's current…
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- 17) Which of the following is the significance of Capital Budgeting? a. Irreversible b. All the options c. Long term effect d. GrowthWhich capital budgeting technique(s) measure all expected future cash inflows and outflows as if they occurred at a single point in time? a. net present value and internal rate of return b. net present value and payback. c. internal rate of return and payback d. paybackYou work as a freelance accounting professional and have beenrecently engaged by the auditors of Life-Positive Inc. for anassignment. In examining the company’s records, you have extractedthe following information Life-Positive’s Account Balances 2021 ($) 2022 ($) Accounts Payable 24,600.00 21,250.00 Accounts receivable 15,700.00 12,340.00 Cash 23,450.00 28,600.00 Cost of goods sold 19,700.00 23,000.00 Depreciation 3,090.00 4,590.00 Dividends 5,800.00 10,800.00 Interest 2,340.00 2,890.00 Inventory 7,050.00 8,640.00 Long-term debt 28,000.00 30,000.00 Net fixed assets 41,500.00 48,000.00 Other expenses 2,400.00 2,800.00 Sales…
- 50 Ratios can be grouped into certain categories, each of which reflects a particular aspect of the financial performance or position of an entity. Suggest the ratios which measure the extent to which assets can be quickly turned into cash. a. Earnings ratios b. Liquidity ratios c. Profitability ratios d. Interest coverage ratios Clear my choiceChapter 22 Organizations determine whether to take on debt and how much to take on are common and necessary parts of financial planning. Explain the sources of capital that are available to an organization to obtain funds. Chapter 23 Explain why an organization should buy or lease when purchasing equipment.Which of the following methods of capital budgeting tries to equate the present value of cash inflows to present value of cash outflows? O a. Payback period O b. Internal rate of return O c. Net present value O d. Accounting Rate of return
- 4- Cash flow statement of any company shows the net cash inflow and outflow during a period of time. Which of the following activities are considered while making cash flow statement? a. Cash flow from investing activities b. All of the options c. Cash flow from financing activities d. Cash flow from operating activitiesEvaluate the following statements:S1. Any investment income of general borrowing is deducted from capitalizable borrowing cost.S2. If the asset is financed by specific borrowing but a portion is used for working capital purposes, the borrowing shall be treated as general borrowing in determining capitalizable borrowing cost. a.False, False b.False, True c.True, True d.True, FalseWhich of the following statements describes the payment amounts over the life of an ARM? A) Payments will remain constant for the life of the loan. B) Payments may go up or down in relation to the index rate. C) Payments may go up or down in relation to the margin rate. D) Payments may go up or down in relation to the equity in the property.
- In the context of capital budgeting, risk refers toSelect one: a.the chance that the internal rate of return will exceed the cost of capital b.the degree of variability of the initial investment. c.the degree of variability of the cash inflows. d.the chance that the net present value will be greater thanzero.uestion The company's bank won't lend it any more money than it already has, and investment bankers have said that debentures are out of the question. The treasurer has asked you to do some research and suggest a few ways in which bonds might be made attractive enough to allow the company to borrow. Explain how to secure the bonds with owned assets in great detial. In what ways does it make the bonds more attractive to allow the company to borrow?You have recently won the super jackpot in the WashingtonState Lottery. On reading the fine print, you discover that you have the following twooptions:a. You will receive 31 annual payments of $250,000, with the first payment beingdelivered today. The income will be taxed at a rate of 28 percent. Taxes will bewithheld when the checks are issued.b. You will receive $530,000 now, and you will not have to pay taxes on this amount.In addition, beginning one year from today, you will receive $200,000 each yearfor 30 years. The cash flows from this annuity will be taxed at 28 percent.Using a discount rate of 7 percent, which option should you select?