Explain how the EOQ inventory model can be modified and used to help determine the optimal sizeof a firm’s cash balances. Do you think the EOQapproach to cash management is more or less relevant today than it was in precomputer, preelectronic communications days?

Q: Hi, I want to ask about the Cash Over and Short Account. Why and how does this account exist? Where…

A: Step 1 An account in the general ledger in which the amount by which actual ending cash balance…

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A: Step 1 For businesses with unexpected revenue and expenditure, the Miller-Orr cash management model…

Q: Are there any time gaps in capturing economic events in cash distribution systems? Were there any…

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Q: What is a cash budget, and how is this statementused by a business? How is the cash budget affected…

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A: Financial statement includes statement of cash flows, Balance sheet and Profit and loss statement.

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A: Cash flow are very important for any firm because without cash no business can survive for much…

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A: The forecasting method where the current sales are forecasted to ascertain the level of future sales…

Q: Compare the various cash management alternatives.

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Q: Discuss the factors that are likely to influence the desired level of cash of a company

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Q: Explain how Monte Carlo simulation can be used to help set afirm’s target cash balance.

A: Monte Carlo Simulation It is a model that is helpful in accommodating a number of risks in different…

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Q: How can cash discounts be used to influence sales volume and the DSO?

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Q: Importance of Cash to Business Success

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Q: How cash budget statement can be used to invest the amount of cash that a firm carries and to…

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A: The cash is influenced by the person holding it.

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Q: How has technology changed the way target cash balances are set?

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Q: What are the techniques that a company can use to manage cash balances?

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Q: Regarding a motive for maintaining liquidity, which of the following is true? Multiple Choice Firms…

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Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.