Quiz Ch 19 – T/F Cash Budgeting Planning Horizon
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: Cash budgeting typically involves a planning horizon of at least five years.
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.
True or false: Short-term financing plans are typically crafted through a trial-and-error process.
True or false: Companies extend their payables by presenting customers with more favorable payment terms.
True or false: Firms with exceptionally high cash reserves frequently utilize tax havens for their cash storage.
True or false: Numerous high-tech companies maintain substantial holdings of marketable securities.
True or false: Cash reserves decrease when a company procures raw materials on credit.
True or false: Lowering inventory levels results in a cash source.