Which of the following is not a basic principle of cash management?
A) Increase collection of receivables.
B) Keep inventory levels high.
C) Delay payment of liabilities.
D) Invest idle cash.

Question

Quizplus · Accepted Answer

Keeping inventory levels high is not a basic principle of cash management, as it ties up cash that could be used elsewhere. Instead, efficient cash management involves maintaining optimal inventory levels to free up cash.

Which of the Following Is Not a Basic Principle of Cash