Quiz Ch 19 – Impact on Cash Holdings
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
Which results in a decrease in the firm’s cash holdings?
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.
True or false: Cash budgeting typically involves a planning horizon of at least five years.
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.