1. Currently, the two basic methods by which cash managers transfer funds from accounts at one bank to accounts at another bank are: (Points : 4)

a. EDTs, and wire transfers

b. overnight mail, and wire transfers

c. Western Union transfers, and wire transfers

d. courier, and EDTs

Question 2.2.

Which of the following is NOT one of the primary ways a company can reduce its inventory investment?

(Points : 4)

expand sales

forecast sales more accurately

find more reliable suppliers

eliminate bottlenecks in the production process

Question 3.3.

Inventory management is often viewed as the need to keep enough product on hand to avoid stock-outs, however the financial manager is concerned about:

(Points : 4)

having a larger assortment than any of the competitors earning a reasonable rate of return on invested capital

ordering the largest quantities possible to maximize quantity discounts

maximizing the inventory

Question 4.4. An increasing the inventory turnover ratio is good for a business. (Points : 4)

True False

Question 5.5. Aging schedules are used to manage inventory. (Points : 4)

True False

Question 6.6. Factoring is the selling of receivables to a third party. (Points : 4)

True False

Question 7.7. 3/15 net 45 means the seller gets a 3% discount if they pay in 15 day otherwise they must pay with 60 days of the invoice. (Points : 4)

True False