Treasury Controls and Payment Methods Quiz

What is business cycle forecasting?

Business cycle forecasting is the creation of conjectures about how the business cycle will unfold in the future.

How can an economist predict an economic boom?

An economist might predict an economic boom by observing that companies are hiring new workers at a fast pace and unemployment is falling.

What are the three possible actions to obtain, analyze, and report on business cycle forecasts?

The three possible actions are: 1. Report on published forecasts, 2. Subscribe to a forecasting service, 3. Develop an in-house forecasting model.

What is the purpose of cash forecasting controls?

The purpose of cash forecasting controls is to assemble a daily cash forecast quickly using the preceding day's forecast as a template with minor updates. Signup and view all the answers

What is the purpose of the top row in a cash forecasting model?

Indicate the date of the last update Signup and view all the answers

In a cash forecasting model, what follows the beginning balance row?

Collections from customers Signup and view all the answers

What is the role of short-term liquidity planning in cash forecasting?

Monitor day-to-day cash balance Signup and view all the answers

Which row in a cash forecasting model includes payments to suppliers?

List of cash expenses Signup and view all the answers

What component is crucial for a treasurer when updating a cash report daily?

Date of the last update Signup and view all the answers

Why is it important for a business to tailor their cash forecasting model to specific objectives?

To increase the usefulness of the forecasting model Signup and view all the answers

Which aspect does interest and debt reduction focus on in cash forecasting?

Planning for loan payment Signup and view all the answers

What does the bottom part of a cash forecasting model summarize?

Beginning balance for the next period Signup and view all the answers

Which factor influences how effective a forecasting model will be in providing insights?

Specific business objectives Signup and view all the answers

Why is monitoring a business's cash balance on a day-to-day basis crucial in short-term liquidity planning?

To track immediate financial needs Signup and view all the answers

Treasury Controls and Payment Methods Quiz

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