Quiz Ch 19 – Identifying Steps in Cash Budget Construction
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
Which is NOT a step in constructing a cash budget?
Which is NOT a step in constructing a cash budget?
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 term is used to describe the managerial strategy when they consistently function as short-term lenders?
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 is the primary objective of managers who engage in “stretching their payables”?
What happens when a firm finances long-term assets with short-term sources?
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?
How do managers receive warnings about anticipated cash shortages?