Question 1

Which of these is the best example of a raw material?

Accepted Answer

A)  Set of tires for an automaker
B)  Partially assembled airplane
C)  Cabinets ready to be shipped
D)  Can of paint waiting to be sold
E)  Completed product awaiting customer deliveryF) C) and D)
G) A) and C)

Question 2

Which one of the following will reduce the disbursement float of a firm?

Accepted Answer

A)  Mailing a check from a very remote location
B)  Mailing an unsigned check so that it must be returned for a signature
C)  Paying a loan payment at the bank rather than mailing a check to the bank
D)  Requiring that all checks be held one day before mailing so they can be reviewed by a manager
E)  Writing checks on a zero-balance account rather than on the master accountF) A) and E)
G) B) and C)

Question 3

The checks received in a lockbox are deposited:

Accepted Answer

A)  into a local bank and then transferred electronically to a concentration account.
B)  into a local bank and immediately invested in short-term investments.
C)  as soon as they are posted to the customer's account.
D)  the following day and immediately invested.
E)  directly into an investment account.F) B) and D)
G) A) and B)

Question 4

In a typical month,a company receives 39 checks totaling $168,000.The payment on these checks is normally delayed by an average of 2.7 days.What is the average daily float? Assume 30 days in a month

Accepted Answer

A)  $14,500
B)  $15,333
C)  $15,120
D)  $16,217
E)  $14,667F) All of the above
G) B) and D)

Question 5

Which of these are money market securities?
I.Jumbo CDs
II.Short-term municipal debt
III.U.S.Treasury bills
IV.Commercial paper

Accepted Answer

A)  I and IV only
B)  II and III only
C)  I, II, and IV only
D)  II, III, and IV only
E)  I, II, III, and IVF) A) and E)
G) A) and D)

Exam 17: Working Capital Management

Which one of the following will reduce the disbursement float of a firm?

Correct Answer
verified

In a typical month,a company receives 39 checks totaling $168,000.The payment on these checks is normally delayed by an average of 2.7 days.What is the average daily float? Assume 30 days in a month

Correct Answer
verified

Which of these is the best example of a raw material?

Correct Answer
verified

Which of these are money market securities? I.Jumbo CDs II.Short-term municipal debt III.U.S.Treasury bills IV.Commercial paper

Correct Answer
verified

The checks received in a lockbox are deposited:

Correct Answer
verified

Exam 17: Working Capital Management

Which one of the following will reduce the disbursement float of a firm?

Correct AnswerverifiedShow Answer

In a typical month,a company receives 39 checks totaling $168,000.The payment on these checks is normally delayed by an average of 2.7 days.What is the average daily float? Assume 30 days in a month

Correct AnswerverifiedShow Answer

Which of these is the best example of a raw material?

Correct AnswerverifiedShow Answer

Which of these are money market securities? I.Jumbo CDs II.Short-term municipal debt III.U.S.Treasury bills IV.Commercial paper

Correct AnswerverifiedShow Answer

The checks received in a lockbox are deposited:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified