iMPORTANT

terms of sale are frequently changed by the financial manager in order to increase sales.

Question 12 options:

	True
FALSE

Which of the following is NOT a motive for a corporation to hold cash balances?

Question 8 options:

	transactions
	float
	precautionary
	speculativ

All of the following elements of a cash management program will likely contribute to an increase in the value of the firm EXCEPT

Question 1 options:

	collect cash more quickly.
	slow down cash disbursements.
	prepare more accurate cash flow forecasts.
	increase cash balances for precautionary reasons.

Which of the following is the least liquid?

Question 2 options:

	U.S. Treasury bills
	commercial paper
	money-market mutual funds
	federal agency securities

Inflation affects the EOQ model in all of the following ways EXCEPT

Question 6 options:

	changing the investment in accounts receivable.
	encourages anticipatory buying.
	increased carrying costs.
	encourages buying early to avoid price increases.

Which of the following is NOT a motive for a corporation to hold cash balances?

Question 8 options:

	transactions
	float
	precautionary
	speculative

he financial manager typically cannot control the level of credit sales, and hence the company's investment in accounts receivable, as the level of credit sales is determined in large part by the nature of the business enterprise.

Question 11 options:

	True
	False

According to the Altman model, multiple discriminant analysis indicates that those applicants with a Z score below 2.7 have a significant probability of filing for bankruptcy within a year.

Question 13 options:

	True
	False