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Dec 16, 2020 · PDF | Cash(liquidity) management is at the heart of a firm’s financial management. It is a silver lining between the bankruptcy and the success story of... | Find, read and cite all the research ...
Cash is a valuable yet scarce resource that all businesses have in limited quantity. Present research on cash management has focused on its connection with many important areas such as the effect on the liquidity of the business, its financial performance, bankruptcy, and the overall working capital itself.
- Mustapher Faque
Dec 16, 2020 · Cash(liquidity) management is at the heart of a firm’s financial management. It is a silver lining between the bankruptcy and the success story of a company. Therefore, this study intends to contribute some insights into cash management practices and how firms can use them to achieve sound financial performance. This study provides a comprehensive literature review on existing theories and ...
Cash and Cash Equivalents Any enterprise needs to have cash available to pay its bills, compensate employees, purchase equipment, and so forth. At the same time, organizations try to manage their cash to avoid having more cash on hand than is necessary. As part of a cash-management program, most organizations invest some of their cash in short ...
- 2.2 CaSh and CaSh equIvalentS
- 2.2.1 Bank Reconciliation
- 2.2.2 Bank Overdraft
- 2.2.2.1 Balance Sheet Treatment of Bank Overdraft
- 2.2.2.2 Bank Overdraft and Statement of Cash Flows
- 2.2.3 Petty Cash
- 2.4 aCCOuntInG FOr FInanCIal InStruMentS
- 2.6 aCCOuntInG FOr hedGInG
Cash and cash equivalents is an asset that appears on the statement of finan-cial position of a business and includes currency (coins and banknotes) held by a business (in hand and in bank accounts) and cash equivalents. Cash is a medium of exchange, a store of value and a unit of account and a business needs to have sufficient cash in order to be ...
company’s cash balance at bank and its cash balance according to its accounting records usually do not match. This is due to the fact that, at any particular date, checks may be outstanding, deposits may be in transit to the bank, errors may have occurred, etc. Therefore companies have to carry out bank reconciliation process which prepares a state...
When a business’ bank account has a negative balance, it is said to be running a bank overdraft (more precisely an actual bank overdraft). It is a form of financing in which the bank honors presented checks even when there is no balance in the business account which results in nega-tive balance in the bank account. There is a special type of bank o...
When the bank has a right to offset the overdraft balance with another bank account of the business, the overdraft is netted off against the other bank accounts maintained with the same bank and the net bank balance is shown as the balance of cash at bank. When the bank has no such right to offset, the overdraft is reported as a liability and when ...
For the purpose of statement of cash flows, under US GAAP any changes in bank overdrafts for a period are appropriately reported as cash flows from financing activities. Under IFRS, however, bank overdraft is treated as part of cash and cash equivalents and movement in bank overdraft is not reported any-where in the statement of cash flows.
Petty cash fund is a relatively small amount of cash that businesses keep on hand for the purpose of small transactions such as providing change to customers, postage expenses, highway tolls. In such transactions, the use of checks is time consuming, costly, or illogical. Usually, a custodian is appointed to administer the petty cash and it is his/...
The financial reporting rules for financial instruments determine whether a particular type of instrument should be recorded at historical cost or at fair value. Historical cost is a measure of value based on the nominal or original cost at the time of acquisition, while fair value is a measure of value based on current market prices at the financi...
The objective of hedge treatment for financial reporting purposes is a proper matching of the timing of gain or loss recognition on a derivative instrument used for hedging purposes with the income or expense rec-ognition related to the item being hedged.12 For financial reporting pur-poses, the hedging instrument and the underlying asset are both ...
- Felix I. Lessambo
- 2018
Mar 15, 2023 · In this paper, we summarize and analyze the relevant research on the cash management problem appearing in the literature. First, we identify the main dimensions of the cash management problem. Next, we review the most relevant contributions in this field and present a multidimensional analysis of these contributions, according to the dimensions of the problem. From this analysis, several open ...
Jun 21, 2023 · Effective financial management is critical to the success of any organization. This review paper provides a comprehensive analysis of financial management as a network of interdependent processes ...
