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Which of These Is Not a Broad Principle of Cash

Question 31

Multiple Choice

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


A) Collect cash owing from accounts receivable as quickly as possible.
B) Pay accounts payable just before the due date rather than when the statement is first received.
C) Buy all capital equipment on hire purchase.
D) Invest any cash that is surplus to requirements to earn a return for the business.

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