Which of the following statements is false?
A) A basic principle of cash management is to increase the speed of paying liabilities.
B) A company should plan the timing of major expenditures in light of its operating cycle.
C) A cash budget will help determine if additional financing will be necessary.
D) A key principle of cash management is to increase the speed of collection on receivables.

Question

Quizplus · Accepted Answer

Increasing the speed of paying liabilities is not a principle of cash management; instead, companies aim to delay payments as long as possible without incurring penalties to manage cash flow effectively.

Which of the Following Statements Is False