Cash Management

Chapter-IV Analysis of notes and Liquidity Management innovation signification of Cash Management Analysis of Cash Management Cash Planning Cash Forecasting and Cash Budgeting Cash take hold Technique Control and Review Liquidity Analysis measuring stick of Liquidity and Trends - workings of Liquidity and Trend - Net Working Capital to Current Liabilities - Working Capital Turnover Introduction One of the most cardinal areas in the day-to-day centering of the degradeds deals with the anagement of working capital, which is defined as tout ensemble the short-term assets utilise in daily operations. This consists primarily of funds, tradeable securities, accounts receivable and inventory. The balances in these accounts canister be highly volatile as they oppose very quickly to changes in the firms operate environment. A highly quiet firm has sufficient cash to throw its bills at all times. An illiquid firm is unable to pay its bills when due. In a financial sense, the term cash refers to all money items and sources that are immediately available to help in paying firms bills. On the balance sheet, cash assets include deposits in financial institutions and cash equivalent in money market funds or marketable securities.

All highly liquid shortterm securities are treated as cash. Most government and collective securities are treated as cash because they may be liquidated through a telephone call. Cash is the most important current assets for the operations of the business. It is the basic input needed to limit 120the business running on a continuous basis. It is the money, which the firm can disburse immediately without any restriction. The term cash includes coins, currency, cheques held by the firm and balance in its bank accounts. J.M. Keyens postulated 3 motives for holding cash viz. transactional motive, precautionary motive, and speculative motive. These can be said to form the basis for cash perplexity in business enterprise. Cash... If you want to get a broad(a) essay, order it on our website: Orderessay

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