AICPA Exam CPA-Business Topic 3 Question 45 Discussion

Choice 'd' is correct. When managing cash and short-term investments, a corporate treasurer is primarily concerned with liquidity and safety.

Choice 'a' is incorrect. The board of directors and general management would be interested in maximizing rate of return on company operations.

Choices 'b' and 'c' are incorrect. The tax manager would be interested in minimizing taxes, and investing in common stock due to the dividend exclusion for federal income tax purposes.