Which of the Following Principles of Cash Management Is Not

Multiple Choice

Which of the following principles of cash management is not true?

A) There are disadvantages for a business in holding very low levels of inventory.
B) The longer the operating cycle the longer it takes to pay creditors.
C) Payments to creditors should not be delayed if it means discounts on offer are lost.
D) Generally, cash surpluses should be used to acquire necessary non-current assets rather than being kept in a fixed deposit.