Which of the following is true regarding cash management?

A) The basic objective in cash management is to keep the investment in cash as low as possible while still operating efficiently and effectively.
B) A cost of holding cash is the liquidity it gives the firm.
C) A cost of holding cash is the interest income earned on the outstanding cash balance.
D) A firm should decrease its cash holdings as long as the NPV of doing so is negative.
E) Effective cash management results in minimization of the total interest earnings involved with holding cash.

Too many dollars chasing too few goods is a description of _____ inflation.

Human resource planning is the process of analyzing an organization's human resource needs and determining how to best fill them.

Regarding security deposits, which of the following is false?

A) A security deposit is typically in the amount of one month's rent.
B) At the expiration of a lease, the landlord is required to return to the tenant the security deposit minus any costs for damages caused by the tenant.
C) At the expiration of a lease, if a landlord retains any portion of the security deposit, the landlord must provide the tenant with a list of the damages.
D) Federal law determines the amount of time that the landlord has to return the security deposit to the tenant.
E) If the landlord exceeds the deadline in which to return the security deposit, the tenant can recover the deposit, plus attorney fees.

Each of the following people would be hurt by unanticipated inflation except

A) long-term bondholders.
B) debtors.
C) landlords who have granted long-term leases.
D) retired people on fixed pensions.

The assets and liabilities of Rocky's Day Spa on December 31 and its revenue and expenses for the year are listed below. The capital of the owner is $68,000 on January 1. The owner invested an additional $10,000 during the year.? $$\begin{array}{lrlr}\text{ Accounts payable }& \$4,375& \text{ Spa operating expense }& \$23,760\\ \text{ Accounts receivable }& 8,490& \text{ Office expense }& 2,470\\ \text{ Cash }& 13,980& \text{ Spa supplies }& 9,230\\ \text{ Fees earned }& 98,435& \text{ Wages expense }& 26,580\\ \text{ Spa furniture and equipment }& 56,000& \text{ Drawing }& 38,170\\ \text{ Computers }& 2,130& & \end{array}$$ Prepare a statement of owner's equity for the current year ended December 31.