CHAPTER 7INTERNAL CONTROL AND CASH Previous Page 7 of 8 Next

CHAPTER 7-INTERNAL CONTROL AND CASH Previous Page 7 of 8 Next? Which of the following statements is true of days\' cash on hand? O a. It is a popular measure used by nonprofits to reveal how long the nonprofit could survive if contributions dropped significantly. Ob. It is used by start-up companies to measure how long cash is available to support operations until revenues begin to be earned. Oc. It can be used to estimate how long a business could survive a catastrophic event. d. All of these choices are corect.

Solution

1 The Days cash on hand represents the number of days of operating expense a entity can pay with its current cash available. All options are correct according to given statement Answer is D 2 Total Operating Expense 640000 Less: Depreciation(Non Cash Expense) 140000 Net Operating Expense(Cash Expenses) 500000 Answer is C $500000