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CTP · Question #889
CTP Question #889: Real Exam Question with Answer & Explanation
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Question
- (Topic 9) Company A and Company X are small companies doing business with only one bank. Company A has monthly sales of approximately $1.1 million and Company X has sales of $750,000. Typically, Company A holds daily available cash balances in the range of $175,000 to $250,000 and Company X holds $90,000 to $125,000. Which of the following can be said of the cash management practices of both companies?
Options
- ACompany X has more counterparty risk than Company A.
- BCompany A has more supplier risk than Company X.
- CCompany A has more financial institution risk than Company X.
- DCompany X has more credit risk than Company A.
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