Question

explain the concept of cash management and its objectives.

Answer 1

Cash management refers to that management which always see that a sufficient cash should available in the business every time to meet any future liabilities..

Its objective are..

1/ Availability of cash - - cash management always have objective that a sufficient cash should available in the business every time so that uncertain liabilities can meet easily in future.

2).Optimum use of cash resources - - cash management another objective is to use the resources properly. Because in this way, reduction of cost is possible.

3)) Inflow always more. - - Cash management should always considered that inflows should more in business.. because if outflows are more it leads to poor results achievement

4)) Best method for raising finance - - Cash management has objective to raise the funds from best source i. e. only by using best source business can earn maximum profits...

Answer 2

Answer:

The objectives of cash management are straightforward – maximise liquidity and control cash flows and maximise the value of funds while minimising the cost of funds. The strategies for meeting such objectives include varying degrees of long-term planning requirements.