What is NOT a smart way to improve a company cash position?
A) Collect prepayments from customers
B) Reduce inventory to just what you need for immediate production
C) Try to replace capital purchase with leases or rentals
D) Prepaying expenses

Question

Quizplus · Accepted Answer

Prepaying expenses may temporarily improve cash position, but it is not a sustainable solution as it depletes the company's future cash flow. It is important to properly budget and manage expenses rather than relying on prepayments. The other choices (A, B, and C) are smart ways to improve a company's cash position as they focus on increasing cash inflows or reducing unnecessary cash outflows.

What Is NOT a Smart Way to Improve a Company