_______7. The Cash Conversion Cycle uses 3 balance sheet accounts. They are:

1. Accounts receivable, inventories and accounts payable
2. Cash, accounts receivable and notes payable
3. Accounts receivable, notes payable and accruals

_______8. The Baumol cash model provides optimal the cash level that minimizes the total cost associated with transferring funds out of securities into cash during a given time period.

1. True b. False

_______9. Select the statement than differentiates between the Baumol model and the Miller-Orr model.

1. The Miller-Orr model allows for unpredictable fluctuations in cash balances by using the variance in the formul
2. The Miller-Orr model places more emphasis on the transaction expenses needed to secure the cash
3. Different opportunity costs caused the order quantity to vary between the two models.