Which of the following presents an effective technique to improve cash management?
A) Speed up cash payments and slow down cash collections.
B) Speed up cash collections and slow down cash payments.
C) Speed up both collections and payments of cash.
D) Slow down both the payment and collections of cash.

Question

Quizplus · Accepted Answer

In order to maximize the investment potential of a firm's funds, it's not unusual for finance managers to suggest that the firm pay bills as late as possible, unless a cash discount is available. The other half of this rule of thumb is to collect what's owed to the firm as quickly as possible.

Which of the Following Presents an Effective Technique to Improve