e establishment and usage of a zero-balance account in relation to the cash management strategies of a firm generally decreases all except one a. any excess bank balance b. processing time c. any disbursement float d. the annual cost of cash
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The establishment and usage of a zero-balance account in relation to the cash management strategies of a firm generally decreases all except one
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- The percentage of accounts receivable that is uncollectible can be ignored for cashbudgeting becausea. no cash is received from an account that defaults.b. it is included in cash sales.c. it appears on the budgeted income statement.d. for most companies, it is not a material amount.e. None of these.Which of the following is not a basic principle of cash management? Keep inventory levels high. Invest idle cash. Increase the collection of receivables. Delay payment of liabilities.A company is expecting a temporary negative cash flow. Discuss the benefits of funding the deficit by arranging an overdraft facility with its bank
- The company can repay its debt or invest if: O a. the opening cash balance plus the cash receipts is less than the cash needed for disbursement in the budget period O b. None of the given answers. O c. the cash needed for disbursement is less than the total of the opening cash balance plus the cash receipts in the budget period O d. there is a cash deficiency in the budget period. O e. total cash available is less than the cash needed for expenditure in the budget period. US PAGE NEXT PAGE e to search W 11:37 A DA dx ENG 22-05-2021 hp 141 brt sc detete home end TUD 96 - backspace lock E P 7 V 8 A 94 home D] H K enter 50 pause ↑ shift 11 end alt ctriWhich of the following is not normally decreased by a cash outflow transaction? a. Payroll Withholdings Payable b. Accrued Expense c. Deposits on Returnable Containers d. Deferred Revenues[Question text] Cash management involves _________. Select one:A. maximizing the income earned on cash reservesB. determining the optimal level of liquidity that should be maintainedC. optimizing the collections and disbursements of cashD. reconciling a company's book balance with its bank balance
- Bank overdrafts that are repayable on demand and the bank balance often fluctuates from positive to overdrawn shall be classified as Operating activities Investing activities Financing activities Component of cash and cash equivalentsCash management principles do not include: a.paying suppliers promptly. b.speeding up collection from customers. c.delaying payment of suppliers. d.earning the greatest return possible on excess cash.The company may need to borrow money if : a. total cash available is more than the cash needed for expenditure in the budget period . b. the cash needed for expenditure in the budget period trails behind the total cash available . c. the cash needed to pay for expenditures is less than the total of the opening cash balance plus the cash receipts in the budget period d. there is a cash deficiency in the budget period . e . None of the given answers .
- The term Cash Management refers to the day-to-day administration of managing cash inflows and outflows. Because of the multitude of cash transactions on a daily basis, they must be managed. The ultimate goal of cash management is to maximize liquidity and minimize the cost of funds and it is extremely crucial for any organization as mismanagement can lead to financial distress. This impacts future growth for the company. Maintaining cash balances while earning a return on idle cash are also top concerns.Cash management allows estimating the cash profits and not just profits from outstanding incomes and credit sales. It helps in detecting cash embezzlement. It allows in speeding up the working capital cycle. It helps in rewarding such debtors that make quicker payments.Discuss in detail the services generally offered by banks under the Cash management services arrangement.Which of the following is/are a sign that a company cannot quickly turn its receivables into cash (may have more than one answer)? Check All That Apply a)A low receivables turnover ratio. b)A low average collection period. c)A high receivables turnover ratio. d)A high average collection period.The cash cycle is longer than the operating cycle when Select one: a. Inventory period is positive b. Account receivable period is positive c. Account payable period is positive d. Receivable cannot be collected from customers e. None of the above answers is correct
