Which is not a cash management activity?
A)Purchase of inventory.
B)Purchase of land.
C)Payment of taxes.
D)Receipt of interest on cash equivalents.

Question

Quizplus · Accepted Answer

Purchase of land is a capital expenditure, it is not a cash management activity. Cash management activities are those that allow a business to manage their daily cash flow operations, such as managing liquidity, optimizing cash balances, collecting and depositing cash, and investing excess cash. Therefore, choices A, C, and D are all cash management activities.

Which Is Not a Cash Management Activity