Quiz Ch 19 – Consequences of Excessive Uses of Cash
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
What happens when a firm’s cash outflows exceed its cash inflows during an accounting period?
What happens when a firm’s cash outflows exceed its cash inflows during an accounting period?
How is a firm’s permanent working capital defined?
What is the primary drawback associated with the relaxed strategy of long- versus short-term financing?
Which will NOT alleviate an impending cash shortage?
Which results in a decrease in the firm’s cash holdings?
Which action would result in a rise in the firm’s cash balance?
What is the likely action for a firm with a middle-of-the-road policy for long-versus short-term financing during a temporary cash insufficiency?
What might firms be accused of when they consistently invest in significant amounts of marketable securities?
Which is the least probable component of a short-term financial plan to generate cash when a firm requires cash in a specific quarter?
True or false: Assuming all other factors remain the same when a firm shortens its accounts payable period, it enhances its cash holdings.