Which of these is not a broad principle of cash management that helps ensure that a business remains solvent?

Question

Quizplus · Accepted Answer

Buying all capital equipment on hire purchase is not a broad principle of cash management that helps ensure that a business remains solvent. In fact, relying solely on hire purchase for purchasing capital equipment could lead to additional costs and interest expenses, which could burden the business with debt and negatively affect its cash flow. The other three options (collecting cash owing from accounts receivable quickly, paying accounts payable just before the due date, and investing surplus cash for earning return) are broad principles of cash management that help ensure that a business remains solvent.

Which of These Is Not a Broad Principle of Cash