Answer the following Priceple of Financial Accounting chapter 4 questions in words.

Brief Exercise 4-38

Cash Management

Effective cash management is very important to the operating performance of a business.

Required:

1.Conceptual Connection: Explain the principles of cash management.

2.Why might it be advantageous to delay paying suppliers?

Exercise 4-52

Operating Cycle

Business activity is often described as being cyclical in nature.

Required:

1.Conceptual Connection: Describe the cyclical nature of business activity.

Case 4-78

Internal Controls Relating to Inventory

Recall our discussion relating to internal controls and the safeguarding of assets of the organization. Inventory is normally one of the largest balances on the statement of financial position.

Required:

1.Identify and discuss internal controls relating to inventory.