Which of the following is NOT a component of effective cash management and control for a company's operating cycle?

Question

Quizplus · Accepted Answer

The practice of using surplus cash to purchase bonds or other long-term investments is not a component of effective cash management and control for a company's operating cycle. Effective cash management involves managing cash inflows and outflows, maintaining adequate levels of liquidity, minimizing idle cash, and optimizing the use of cash resources. Investing surplus cash in long-term securities may yield higher returns but does not directly impact the company's operating cycle or short-term cash needs. A, B, and D are all components of effective cash management and control for a company's operating cycle.

Which of the Following Is NOT a Component of Effective