#2. The most effective cash flow techniques require

Multiple Choice

• budgeting for both the amount and timing of required cash flows.

• reconciling bank statement each day.

• taking advantage of prompt payment discounts.

• trusting customers to pay on time.

#3. Which of the following is not one of the primary causes of cash flow problems for small businesses?

Multiple Choice

• seasonal variation in sales

• requirements to periodically make large capital investments

• difficulty collecting money due from customers

• tax obligations

#4. ________ is a schedule of the amounts and timings of the cash coming into a business.

Multiple Choice

• A cash disbursements budget

• A cash receipts budget

• A comprehensive budget

• A capital budget

#5. ________ is a method that employees use to steal cash after it has been received and recorded in the company books.

Multiple Choice

• Racketeering

• Phony disbursement

• Skimming

• Embezzlement

#6. Revenue-producing tasks and activities related to, but not part of, the primary strategy of a business, are called

Multiple Choice

• discount projects.

• charge backs.

• noncore projects.

• consignments.

#7. Which of the following is the most common noncash incentive given to an employee?

Multiple Choice

• stock options

• autonomy

• benefits packages

• telecommuting

#8. An entity that processes checks and electronic fund transfers for banks and other financial organizations is called

Multiple Choice

• cash flow management.

• a clearinghouse.

• commercial paper.

• consignment.

#9. A negative balance in a depositor's bank account is referred as a(n)

Multiple Choice

• clearinghouse.

• overdraft.

• demand deposit.

• payable.

#10. The information that the bank knows about an account, but is not known by the account holder, includes

Multiple Choice

• the checks written and mailed by an account holder but have not been received by the bank.

• the amount of any direct payments made in the account by the account holder's customers.

• deposits that the account holder has mailed or made after bank closing.

• the sum of cash inflows and cash outflows recorded in the holder's accounting records.