Question

How to reduce cash in hand with out affecting profit?

Answer 1

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❏Profit is defined as revenue less expenses. It may also be referred to as net income. Cash flow, on the other hand, refers to the inflows and outflows of cash for a particular business.

❏Earning revenue does not always increase cash immediately, and incurring an expense does not always decrease cash immediately.

Answer 2

Explanation:

One of the most significant adverse effects of holding excess cash is paying more interest on debt than is necessary. If you have stockpiles of cash and outstanding, high-interest debt balances, you have too much cash on hand.