QUESTION: 13

In which of the following international cash management methods is title for goods transferred for intercompany sales?

Pooling
Internal factoring
Multilateral netting
Re-invoicing

Answer(s): D

QUESTION: 14

A company is based in the United States and has an operating subsidiary in Germany. With a stable U.S. dollar and a depreciating euro, the company's cash manager may elect to:

pool excess funds in the United States to offset German deficits
implement a dollar-based multilateral netting system.
start leading receivables from the German subsidiary.
establish a multicurrency account in the United States.

Answer(s): C

Reveal Solution Next Question

Account analysis statements should be examined for which of the following reasons?

I). To verify volumes processed
II). To determine daily cash shortages
III). To verify the accuracy of bank service charges
IV). To ensure that company-initiated transactions have occurred

I and IV only
I and III only
II and III only
II and IV only

Answer(s): B

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QUESTION: 16

An optimal concentration system minimizes all of the following EXCEPT:

administrative costs.
disbursement float.
excess balances.
transfer costs.

Answer(s): B

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QUESTION: 13

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QUESTION: 16

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