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When managing cash and short-term investments, a corporate treasurer is primarily concerned with:
Suggested Answer: D
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Choice 'd' is correct. When managing cash and short-term investments, a corporate treasurer is primarily concerned with liquidity and safety.
Choice 'a' is incorrect. The board of directors and general management would be interested in maximizing rate of return on company operations.
Choices 'b' and 'c' are incorrect. The tax manager would be interested in minimizing taxes, and investing in common stock due to the dividend exclusion for federal income tax purposes.
10 comments · newest first
LA
Lawana
11 months ago
Investing in common stock? Seems risky for short-term!
MA
Malinda
12 months ago
Minimizing taxes? Not really the main focus here.
LE
Lelia
12 months ago
Surprised that people overlook safety!
IO
Iola
12 months ago
I think maximizing rate of return is more important.
AL
Alise
1 year ago
Definitely liquidity and safety! That's the priority.
JU
Julene
1 year ago
Okay, I think I've got this. A company moving to the cloud is trying to shift from capital expenses to operating expenses, so the answer must be D.
AD
Adelina
1 year ago
Hmm, this seems like a tricky one. I'm not entirely sure what the "compensation philosophy" is referring to. I'll have to think this through carefully and see if I can eliminate any of the options.
AN
Annett
1 year ago
Wasn't there a practice question that asked about confirming with the lawyer directly? I feel like that could also be a valid part of the audit procedures.
GL
Glenn
1 year ago
I'm a little confused on how to approach this. I'll need to review my notes on cultural analysis and communication planning to make sure I'm considering all the key factors.
JA
Jacki
1 year ago
I'm not sure I fully understand the logic here. I better re-read the question a few times to make sure I'm not missing anything.