The Presque Isle Center has branch operations in three states. Each branch deals with a local bank

The Presque Isle Center has branch operations in three states. Each branch deals with a local bank. However, all excess funds in these branch bank accounts are transferred on a daily basis to the firm's primary bank located near the firm's home office. This routine of transferring cash to the primary bank on a regular basis is referred to as:    A.  cash concentration. B.  strategic cash disbursement. C.  transfer flotation. D.  payables management. E.  float management. Refer to section 19.3

7.	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.    A.  lockbox B.  concentration C.  zero-balance D.  compensating balance E.  revolving Refer to section 19.4

8.	An account into which a firm transfers funds, usually from a master account, in an amount sufficient to cover the checks presented for payment that day is called a _____ account.    A.  lockbox B.  cleanup C.  compensating balance D.  revolving E.  controlled disbursement Refer to section 19.4

9.

The Snow Hut has analyzed the carrying and shortage costs associated with its cash holdings and determined that the firm should ideally maintain a cash balance of $3,600. This $3,600 represents which one of the following to the firm?    A.  target cash balance B.  concentration balance C.  available balance D.  selected cash amount E.  compensating balance Refer to section 19.A

10.	Adjustment costs is another name for which one of the following?    A.  borrowing costs B.  shortage costs C.  cash transfer costs D.  cash wire costs E.  excess cash costs Refer to section 19.A

11.

Why do firms need liquidity? I. to meet compensating balance requirements II. to take advantage of an opportunity that suddenly arises III. to conduct daily business activities IV. to be prepared for a financial emergency    A.  I and II only B.  III and IV only C.  I, III, and IV only D.  II, III, and IV only E.  I, II, III, and IV Refer to section 19.1