Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Active Tutors
Asked Questions
Answered Questions
open accountcredit sales are usually on open account that implies which the seller ships the goods to the buyer and afterward sends the bill
terms of payment vary broadly in practice at one conclusion if the seller has financial resources she or he may extend liberal credit to the buyers
after going through this section you must be capable toknow the need for establishing sound credit policyidentify the different credit policy
in the earlier unit we have studied how firms determine their requirements for current assets and manage their holdings in cash and marketable
in this section we have discussed the motives for conducting cash balances in addition we have discussed cash deficit or surplus situation and how it
the significant functions of a treasury department are as given belowa setting up corporate financial goals financial strategies and aim treasury
a few of the main focus areas of treasury operations are as follows1 cash flow-receipts and disbursements accelerating the collection of cash
treasury management is explained as the corporate handling of all financial matters the production of external and internal funds for business the
by electronic fund transfer the collection float can be completely removed the other benefit of electronic fund transfer is instant updating of
lock box system in this type of system the customers are advised to mail their payments to a post office box hired through the firm for
when the customers of the company are spread over broad geographical areas then in place of a particular collection centre the company opens
collection float considers to the gap among the times payment is made through the customerdebtor and the time while funds are obtainable for use in
once the cash budget has been arranged and suitable net cash flows established the finance manager must ensure that there does not exists an
the subsequent short-term investment opportunities are obtainable to companies in india to invest their temporary cash excessa treasury bills
the requirement for working capital fluctuates according the level of inventory production debtors and creditors etc the working capital needs are
the significant objectives of short-term cash forecast are as given find out operating cash requirement anticipating short term financing
ms sunrise industries estimates its net cash requirement at rs 20 million for the subsequent year opportunity cost fund is 15 percent per annum of
one of the main deities of the financial manager is to keep a sound liquidity position for the firm hence the dues are settled as and while they
firms need cash to invest in inventory receivables and fixed assets and to create payments for operating expenses so as to increase earnings and
the firms require holding cash may be attributed to the three motives specified below the transaction motive the precautionary motive the speculative
cash is a significant current asset for the operations of business cash is the fundamental input that maintains business running smoothly and
financial decisions are depends on specific considerations the major being the cash flows liquidity and cost short-term working capital decisions or
computation of working capital required1operating cycle periodmwfd-c 10138 280726071460-60 11012 or 110
under this method approximation is made of payments and cash receipts in the ensuring period the dissimilarity of these payments and receipts
under this method approximated profit is calculated depends on transactions of the ensuing period afterward decrease or increase in working capital