All of the following elements of a cash management program will likely contribute to an increase in the value of the firm except:
A) collect cash more quickly.
B) slow down cash disbursements.
C) prepare more accurate cash flow forecasts.
D) increase cash balances for precautionary reasons.

Question

Quizplus · Accepted Answer

Increasing cash balances for precautionary reasons ties up funds that could be used for investment or other value-generating activities, thus not directly contributing to an increase in the firm's value.

All of the Following Elements of a Cash Management Program