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Accounting
Determine whether each policy below is good or bad cash management, then identify the cash management strategy violated or followed for each policy.   1. The company negotiates credit terms with suppliers to delay payment of liabilities as long as possible 2. Excess cash is put in checking accounts, earning no interest income. 3. Cash receipts and cash payments are regularly planned and reviewed. 4. Customers are offered discounts to pay early. 5. All equipment is purchased, even equipment infrequently used. Good or Bad Cash Management Strategy

Determine whether each policy below is good or bad cash management, then identify the cash management strategy violated or followed for each policy.   1. The company negotiates credit terms with suppliers to delay payment of liabilities as long as possible 2. Excess cash is put in checking accounts, earning no interest income. 3. Cash receipts and cash payments are regularly planned and reviewed. 4. Customers are offered discounts to pay early. 5. All equipment is purchased, even equipment infrequently used. Good or Bad Cash Management Strategy

Pkg Acc Infor Systems MS VISIO CD
Pkg Acc Infor Systems MS VISIO CD
10th Edition
ISBN:9781133935940
Author:Ulric J. Gelinas
Publisher:Ulric J. Gelinas
Chapter11: The Billing/accounts Receivable/cash receipts (b/ar/cr) Process
Section: Chapter Questions
Problem 2SP
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Determine whether each policy below is good or bad cash management, then identify the cash management strategy violated or followed for each policy.

 

1. The company negotiates credit terms with suppliers to delay payment of liabilities as long as possible

2. Excess cash is put in checking accounts, earning no interest income.

3. Cash receipts and cash payments are regularly planned and reviewed.

4. Customers are offered discounts to pay early.

5. All equipment is purchased, even equipment infrequently used.

Good or Bad

Cash Management Strategy 

 

 

 

 

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