Quiz Ch 19 – T/F Accounts Payable as a Cash Source
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: Boosting accounts payable serves as a means to generate cash.
True or false: Boosting accounts payable serves as a means to generate cash.
True or false: Assuming all other factors remain the same when a firm shortens its accounts payable period, it enhances its cash holdings.
True or false: Cash budgeting typically involves a planning horizon of at least five years.
True or false: Cash flow mainly hinges on receivables, except for cash-on-delivery payments.
True or false: Settling a $5,000 debt to a supplier will result in a $5,000 cash reduction.
True or false: Biotech companies often accumulate significant cash holdings to finance potential investment requirements, particularly if their drugs achieve regulatory approval.
True or false: Managers who have a significant cash surplus might be enticed to adopt a less stringent management approach.
True or false: “In financially troubled firms, a dollar of cash retained within the company is commonly considered to be worth less than a dollar to shareholders.
True or false: In general, inventory tends to be more liquid than receivables.
True or false: When a company extends credit to a customer for goods, there is no immediate alteration in its cash position.