An overall management objective is to:
A) minimize the number of sales transactions
B) minimize the total amount of accounts receivable
C) minimize the time from the beginning of the selling process to the end of the cash collections process
D) maximize the amount of float

Question

Quizplus · Accepted Answer

Minimizing the time from the beginning of the selling process to the end of the cash collections process is an important objective in efficient management. This ensures that the business has a steady cash flow and can use the collected funds for other business purposes. Minimizing the number of sales transactions or total amount of accounts receivable may not necessarily lead to an efficient management process, and maximizing the amount of float may lead to unethical practices.

An Overall Management Objective Is To