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Cash Management
Essay specific features
Written by:
Artie S
Date added:
July 1, 2012
Level:
University
Grade:
A
No of pages / words:
5 / 1285
Was viewed:
8229 times
Rating of current essay:
Essay content:
There are multiple techniques that a firm can employ to manage its cash. Some of these techniques include float, short-term investments, and international cash management. These techniques are discussed in the following sections.
Due to the opportunity cost of holding excess cash, most companies try to leverage the minimal amount of cash that they carry to cover as many payables as possible...
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One way that firms achieve this goal is by employing the use of float. Float refers to the difference between the balance carried on the corporate books and the amount credited to the corporation by its bank (Block & Hirt, 2005). Payables and receivables are entered into corporate books as processed; however, the actual transactions will not be recorded by the bank until the payment has been received and processed by a company and later processed by the bank...
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