Which of the following represent investment goals?
I. saving for major expenditures such as a house or education
II. sheltering income from taxes
III. increasing current income
IV. saving funds for retirement
A) I and IV only
B) III and IV only
C) I, III and IV only
D) I,,II, III and IV
Answer: D
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a. Good cash management practices dictate that a company should maintain as large a balance as possible in its cash account. b. Sound internal control practice dictates that disbursements should be made by check. c. The person handling the cash should also prepare the bank reconciliation. d. Petty cash can be substituted for a checking account to expedite the payment of all disbursements.
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What will be an ideal response?
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