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A manager in a MNC should understand that appreciation in a firm's local currency causes a ____ in
increase; reduction
reduction; reduction
increase; increase
reduction; increase
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- The following are goals‘andobjectives in working-capitalmanagement. Which is the LEASTACCURATE? a. Payables management includes the analysis of the business's use of trade payables and short-term non-trade payables but not long-term non-trade payables.b. Availability of money marketable securities support the cash management function by providing a return on excess cash.c. Receivable management involves setting the credit term but not the implementation of how receivables are collected.d. Inventory management allows the entity to determine the best level of this asset while balancing the risk of over- and under- stocking.In preparing a cash flow statement which of the following is a cash inflow? A. Issue of DebenturesB. Redemption of DebenturesC. Increase in trade ReceivablesD. Decrease in trade payableThe IRR method assumes that cash flows are reinvested at _________. A. the internal rate of return B. the companys discount rate C. the lower of the companys discount rate or Internal rate of return D. an average of the internal rate of return and the discount rate
- Which of the following is a stronger indicator of cash flow flexibility? A. cash flow from operating activities B. cash flow to sales ratio C. free cash flow D. all three indicate comparable degrees of flexibilityWhich of the following situation is better for the company? O a. All of these O b. Cash conversion cycle should be shorter Oc. Cash conversion cycle should longer O d. Fixed cash conversion cycleMultiple choice: 1. If you sell on credit, your cash inflow depends very much on the A. Cash sales B. Agreements or unsecured accounts C. Collection of AR D. Age of receivables 2. Initial investment of the owner A. Fixed capital B. Working capital C. Capital structure D. Equity capital
- Which of the following is a stronger indicator of cash flow flexibility?A. cash flow from operating activitiesB. cash flow to sales ratioC. free cash flowD. all three indicate comparable degrees of flexibilityThe cash flow cycle also is known as the: Select one: a. cash conversion cycle. b. cash-to-cash cycle. c. working capital cycle. d. revolving credit cycle.Multiple choice: 1. The first and most important step in cash flow planning is A. Submit historical records B. Forecasting your sales revenue C. Estimate your expenses D. Determine the promotion expenditure 2. Why cash flow so important? A. The business runs out of cash B. Cash outflows must exceed inflows C. Imbalance is for only a short period of time D. Cash inflow must exceed cash outflows
- When a firm sells its accounts receivable to raiseshort-term cash, it is engaging in a strategycalleda. factoring.b. financial planning.c. equity financingd. debt financing.e. draftinghow does stretching out AP enhance cashflow? be specific in terms of operating cashflows.Cash flow means inflow: and outflow of cash. An inflow source of cash increases the total cash available at the disposal of the firm while an outflow use of cash decreases it. Select one: True False