how is liquidity determines in cash collection period

Q: What should the net change in cash section of the statement of cash flows always reconcile with?

A: Cash flows statement is a summary statement which provides details of all the cash inflows and cash…

Q: How is the account Cash classified and what kind of balance should it have?

A: The cash account ledger record all the receipt on the debit side and expense paid credit side. A…

Q: What are the considerations for recording and recognizing cash discounts received?

A: Cash discounts, also known as sales discounts or prompt payment discounts, are reductions in the…

Q: Briefly describe the flow of cash among receivables, cash,and marketable securities.

A: Financial assets:   The assets that are easily convertible into cash are referred to as financial…

Q: What are normal and nonnormal cash flows?

A: Answer: Normal cash flows projects are those in which one or two cash outflows occur at the outset…

Q: What is the difference between the sources (in nows) and uses (out nows) of cash?

A: The question is based on the concept of cash flow statement and cash flow analysis for a particular…

Q: Explain the term Cash Equivalency?

A: It is an evaluation procedure by which the cost of comparable properties selling at various funding…

Q: How do I calculate cash provided by operations?

A: Cash provided by the operations = Cash flow from operations = EBIT x (1 - Tax rate, T) + Non cash…

Q: what is the Cash paid to settle the principal on borrowed funds?

A: cashpaid to settle the principal on borrowed funds is called "principal repayment."this amount…

Q: what are the operational aspects of the discounted cash flow (DCF) method?

A: What Is Discounted Cash Flow (DCF)?  Limited income (DCF) is a valuation technique used to assess…

Q: A project has estimated annual net cash flows of $80,000. It is estimated to cost $600,000.…

A: Introduction:- Payback period is a financial metric used to measure the length of time it takes to…

Q: What are the Examples of cash equivalents?

A: Cash & Cash equivalents: Cash is the money which is readily available in the form of currency.…

Q: Describe Financing cash inflows that includes cash received.

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: What is a common cash flow transaction/Give an example?

A: Cash flows are mainly of three types:  1. Operating 2. Investing and 3. Financing  Cash flows from…

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.