Question

Efficient cash management will aim at maximising the availability of cash inflows by decentralising collections and decelerating cash outflows by centralising disbursements.” Discuss.

Answer 1

Cash is the most important current asset for a business operation. It is the thing that carry out the business operations. So a business should have a nice amount saved with them all the time. Cash can be o two forms, generally cash means currency and other things like cheaques drafts etc  And the second type is the assets that can be converted into cash.  Cash in its own form is an idle asset.Unless employed in some form or another, it does not earn any revenue. so  Excessive cash will not contribute to the firm ‘s profits and storage of cash will disrupt its manufacturing operations.