The basic strategies that should be employed by the business firm in managing cash include all of the following except
A) paying accounts payable as late as possible without damaging the firm's credit rating.
B) turning over inventory as slowly as possible while avoiding stock outs.
C) collecting accounts receivable as quickly as possible without damaging customer relationships.
D) tightening credit policies for customers

Question

Quizplus · Accepted Answer

Turning over inventory as slowly as possible while avoiding stock outs is not a recommended strategy for managing cash, as it ties up capital and reduces the firm's ability to generate cash. The other options listed (A, C, and D) are all valid strategies for managing cash.

The Basic Strategies That Should Be Employed by the Business