Chap019 TRẮC NGHIỆM QUẢN TRỊ TÀI CHÍNH BẰNG TIẾNG ANH

Chapter 19 Cash and Liquidity Management Multiple Choice Questions The cash found in a cash drawer that a check-out clerk uses to make change is an example of which of the following motives for holding cash? As p e c ul at iv e Bd ly f o a t C c o m p e n sa ti n g b al a n c e D pr e c a ut io n ar y Etr a n s a ct io n Float is defined as the: A a m o u nt of ca sh a fir m ca n i m m e di at el y wi th dr a w fr o m its b a nk ac co u nt B di f er e nc e b et w e e n b o ok ca sh a n d b a n k ca sh C ch a n g e in a fir m 's ca sh b al a nc e fr o m o n e ac co u nt in g p er io d to th e ne xt D a m o u nt of ca sh a fir m h as o n h a n d E ca sh b al a nc e ac co rd in g to a fir m 's re co rd s Refer to section 19.2 A lockbox is a: A sp ec ial sa fe us e d by a fir m fo r ov er ni g ht st or a g e of a ny ca sh or u n d e p os it e d ch ec ks B sp ec ial sa fe us e d by a fir m th at ca n o nl y b e o p e n e d at pr es p ec ifi e d ti m es of th e d ay C bo x lo ca te d in a b a nk 's va ul t th at is re nt e d by a fir m a n d us e d to h ol d u n pr oc es se d D sp ec ial p os t o f ce bo x w hi ch ca n o nl y b e o p e n e d by pr es p ec ifi e d p os ta l in sp ec to An account into which funds are deposited only in an amount equal to the value of the checks presented for payment that day is called a _ account Alo c k b o x Bc o n c e nt ti o n Cz er ob al a n c e D c o m p e n sa ti n g b al a n c e Er e v ol vi n g Refer to section 19.4 An account into which a firm transfers funds, usually from a master account, in an amount sufcient to cover the checks presented for payment that day is called a _ account Alo c k b o x Bcl e a n u p C c o m p e n sa ti n g b al a n c e Dr e v ol vi n g Ec o nt ro ll e d di s b ur se m e nt Refer to section 19.4 Adjustment costs is another name for which one of the following? Ab or ro w in g c o st s Bs h or ta g e c o st s C c a s h tr a n sf er c o st s D c a s h w ir e c o st s Ee x c e ss c a s h c o st s Refer to section 19.A Cash management primarily involves: A o pt i m izi n g a fir m 's co lle cti o ns a n d di sb ur se m e nt s of ca sh B m ax i m izi n g th e in co m e a fir m e ar ns o n its ca sh re se rv es C re co nc ili n g a fir m 's b o ok b al a nc e wi th its b a nk b al a nc e D d et er m ini n g th e o pt i m al le ve l of liq ui di ty a fir m sh o ul d m nt n E d et er m ini n g th e b es t m et h o d of isi n g ca pi ta l Refer to section 19.1 Disbursements foat: A oc cu rs w h e n a d e p os it is re co rd e d b ut th e fu n ds ar e u n av ail a bl e B ca us es th e b o ok b al a nc e to ex ce e d th e b a nk b al a nc e C h as te n d e d to in cr ea se si nc e th e e n ac t m e nt of th e C h ec k Cl ea ri n g Ac t fo r th e 1st C e nt ur y D is a re co m m e n d e d so ur ce of fu n ds fo r sh or tte r m in ve st m e nt s E is eli m in at e d w h e Collection foat: A is m or e d es ir a bl e to fir m s th a n di sb ur se m e nt f o at B is to ta lly eli m in at e d b y th e in st all at io n of a lo ck bo x sy st e m C ex ist s w h e n a fir m 's av ail a bl e b al a nc e ex ce e ds its b oo k b al a nc e D ca n b e av oi d e d by co lle cti n g p ay m e nt s el ec tr o ni ca lly at th e ti m e of sa le E is eli m in at e d by i m pl e m e nt in g a co nc e nt ti o n b a nk in g sy st e m Refer to section 19.2 10 The main purpose of a cash concentration account is to: A d e cr e as e c ol le ct io n f o at B d ec re as e di sb ur se m e nt f o at C c o n s ol id at e fu n d s D re pl a c e a lo ck b o x sy st e m E co v er co m p e ns at in g b al a nc e re q ui re m e nt s Refer to section 19.3 11 A zero-balance account: A is us e d to co ve r th e co m p e ns at in g b al a nc e re q ui re m e nt of a lin e of cr e di t a gr ee m e nt B is o nl y us e d to d e p os it fu n ds re ce iv e d at lo ca l lo ck bo xe s C is fu n d e d o n a n as n 12 The BAT model is used to: A m a xi m iz e th e b e n e fit s of le v er a g e B d et er m in e th e o pt i m al ca sh p os iti o n of a fir m C eli m in at e all d ail y ca sh su rp lu se s D a n al yz e th e ca sh b al a nc e gi ve n f uc tu at in g ca sh in f o w s a n d o ut f o w s E m ax i m iz e th e o p p or tu ni ty co st s of h ol di n g ca sh Refer to section 19.A 13 The Hobby Shop has a checking account with a ledger balance of $692 The firm has $1,063 in uncollected deposits and $930 in outstanding checks What is the amount of the disbursement foat on this account? Disbursement foat = $930 14 On an average day, Plastics Enterprises writes 42 checks with an average amount of $587 These checks clear the bank in an average of days What is the average amount of the disbursement foat? Disbursement foat = 42 × $587 × = $49,308 15 When Chris balanced her business checkbook, she had an adjusted bank balance of $11,418 She had outstanding deposits worth $879 each and 11 checks outstanding with a total value of $3,648 What is the amount of the collection foat on this account? Collection foat = $879 × = $1,758 16 Your firm generally receives checks a month The check amounts and the collection delay for each check is shown below Given this information what is the amount of the average daily foat? Assume a 30 day month Average daily foat = [($1,500 × 2) + ($3,900 × 1) + ($6,100 × 3) + ($4,200 × 2)]/30 = $1,120 17 Atlas Builders deals strictly with five customers The average amount each customer pays per month along with the collection delay associated with each payment is shown below Given this information, what is the amount of the average daily receipts? Assume every month has 30 days Average daily receipts = ($6,800 + $8,500 + $2,000 + $9,500 + $7,500)/30 = $1,143.33 18 National Exporters deals strictly with two customers The average amount each customer pays per month along with the collection delay associated with each payment is shown below Given this information, what is the amount of the average daily receipts? Assume that every month has 30 days Average daily receipts = ($63,200 + $72,800)/30 = $4,533.33 19 You are considering implementing a lockbox system for your firm The system is expected to reduce the average collection time by 1.3 days On an average day, your firm receives 136 checks with an average value of $219 each The daily interest rate on Treasury bills is 0.021 percent The bank charge per check is $0.26 What is the anticipated daily cost of the lockbox system? Daily cost = 136 × $0.26 = $35.36 20 Your firm spends $346,000 a week to pay bills and maintains a lower cash balance limit of $150,000 The standard deviation of your disbursements is $28,700 The applicable interest rate is percent and the fixed cost of transferring funds is $60 What is your optimal average cash balance based on the BAT model? 21 Donaldson, Inc spends $94,000 a week to pay bills and maintains a lower cash balance limit of $25,000 The standard deviation of the disbursements is $13,000 The applicable weekly interest rate is 0.045 percent and the fixed cost of transferring funds is $52 What is your optimal average cash balance based on the Miller-Orr model? A$ , 3 B$ , C$ , D$ 6, 3 E$ 7, 3 Cash balance target = $25,000 + [0.75 × $52 × ($13,0002/.00045)]1/3 = $49,466.94 Average cash balance = [(4 × $49,466.94) - $50,000]/3 = $57,623 22 Each business day, on average, a company writes checks totaling $26,000 to pay its suppliers The usual clearing time for the checks is days Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $40,000 The cash from the payments is available to the firm after days What is the amount of the firm's average net foat? Net foat = 5($26,000) - 2($40,000) = $50,000 23 Purple Feet Wine, Inc receives an average of $6,000 in checks per day The delay in clearing is typically days The current interest rate is 0.025 percent per day Assume 30 days per month What is the highest daily fee the company should be willing to pay to eliminate its foat entirely? Maximum daily fee = ($6,000 × 4) × 0.00025 = $6.00 24 Cow Chips, Inc., a large fertilizer distributor based in California, is planning to use a lockbox system to speed up collections from its customers located on the East Coast A Philadelphia-area bank will provide this service for an annual fee of $25,000 plus 12 cents per transaction The estimated reduction in collection and processing time is one day The average customer payment in this region is $8,200 Treasury bills are currently yielding percent per year Assume a year has 365 days Approximately how many customers each day, on average, are needed to make the system profitable for Cow Chips, Inc.? NPV = = ($8,200 × × N) - ($0.12 × N)/0.000134 - $25,000/0.05 N = 68 customers per day Essay Questions 25 Explain how a lockbox system operates and why a firm might consider implementing such a system A lockbox system entails opening post ofce boxes in various geographic locations These locations are selected such that they are close to the firm's key customers At each of those sites, a representative from a local bank collects the incoming checks and deposits them into the firm's account The information on the deposits is forwarded to the firm so customer accounts can be credited for the payments The firm transfers funds from these remote bank accounts into one or more centralized bank accounts on a routine basis A lockbox system reduces mailing and processing times, and creates a one-time cash infow for the firm Feedback: Refer to section 19.3