1. A financial manager should be more interested / concerned with the book balance than the net float and bank cash. True&False

2. ..........refers to the time required to clear a cheque through the banking system.

a. Mail float

b. Availability float

c. Disbursement float

3. Short term marketable securities are usually referred and considered as cash equivalents?

True&False

4. The differnce between bank cash and book cash is called float. True&False

5. .................are incurred with a firm runs out of cash and needs to sell Marketable Securities or borrow money from lenders.

a. Operating Costs

b. Trading Costs

c. Investment Costs

d. None of the above

6. As a measurement of long-term solvency, a company that has a low total debt ratio is a sign of a healthy firm. True&False

7. the decision to grant credit to a client depends only on:

a. the inmediate costs of granting credit

b. all of the above

c. the required rate of return for delay cash flows

d. the probability of payment

e. The delayed revenues from granting credit