Which of the following statements is false? A)A basic principle of cash management is to increase the speed of paying liabilities. B)A company should plan the timing of major expenditures in light of its operating cycle. C)A cash budget will help determine if additional financing will be necessary. D)A key principle of cash management is to increase the speed of collection on receivables.

Question

Quizplus · Accepted Answer

A basic principle of cash management is to increase the speed of collection on receivables and delay the payment of liabilities as long as possible without incurring penalties, rather than increasing the speed of paying liabilities. This helps in maximizing the cash available for the business operations.

Which of the Following Statements Is false