A frm with a fexible short term fnancial policy will

36. A frm with a fexible short-term fnancial policy will:
A. maintain a low balance in accounts
receivables.
B. only have minimal amounts, if any, invested in marketable
securites.
C. invest heavily in
inventory.
D. have low cash
balances.
E. have tght restrictons on grantng credit to
customers.
Refer to secton 18.3
AACSB: Analytc
Blooms: Remember
Difculty: 1 Easy
Learning Objectve: 18-02 The diferent types of short term fnancial policy.
Secton: 18.3
Topic: Short-term fnancial policy
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37. Which one of the following is indicatve of a short-term restrictve fnancial policy?
A. purchasing inventory on an as-needed
basis
B. grantng credit to all
customers
C. investng heavily in marketable
securites
D. maintaining a large accounts receivable
balance
E. keeping inventory levels
high
Refer to secton 18.3
AACSB: Analytc
Blooms: Remember
Difculty: 1 Easy
Learning Objectve: 18-02 The diferent types of short term fnancial policy.
Secton: 18.3
Topic: Short-term fnancial policy
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38. Which of the following are associated with a restrictve short-term fnancial policy?
I. litle, if any, investment in marketable securites
II. liberal credit terms for customers
III. low cash balances
IV. increasing inventory levels
A. I and III
only
B. II and IV
only
C. I and IV
only
D. III and IV
only
E. I, II, and III
only
Refer to secton 18.3
AACSB: Analytc
Blooms: Remember
Difculty: 1 Easy
Learning Objectve: 18-02 The diferent types of short term fnancial policy.
Secton: 18.3
Topic: Short-term fnancial policy
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lOMoARcPSD|6186792

39. The Lumber Mart recently replaced its management team. As a result, the frm is
implementng a restrictve short-term policy in place of the fexible policy under which the
frm had been operatng. Which of the following should the employees expect as a result of
this policy change?
I. reducton in sales due to stock outs
II. greater inventory selecton
III. decreased sales due to the new accounts receivable credit policy
IV. decreased investment in marketable securites
A. I and II
only
B. II and IV
only
C. I, II, and IV
only
D. I, III, and IV
only
E. I, II, III, and IV
Refer to secton 18.3
AACSB: Analytc
Blooms: Remember
Difculty: 1 Easy
Learning Objectve: 18-02 The diferent types of short term fnancial policy.
Secton: 18.3
Topic: Short-term fnancial policy
Téléchargé par kjk jkjk ([email protected])
lOMoARcPSD|6186792