Effective cash management involves the trade-off between the risk ...

[dbose]

Effective cash management involves the trade-off between the risk of insolvency (resulting in
  higher near cash balances) and the desire to earn higher returns (resulting in lower near cash
  balances).
 
  Indicate whether the statement is true or false

Question 2

Increased depreciation expenses affect tax-related cash flows by
 
  A) increasing taxable income, thus increasing taxes.
  B) decreasing taxable income, with no effect on cash flow since depreciation is a non-cash
  expense.
  C) pushing a corporation into a higher tax bracket.
  D) decreasing taxable income, thus reducing taxes.

[yasmina]

Answer to Question 1

TRUE

Answer to Question 2

D