Why is it preferable to receive cash sooner rather than later?

Q: (Liquidity Analysis) The King Carpet Company has $2,830,000 in cash and a total of $11,300,000 in…

A: following information is provided  : Current assets = $11300000cash before plan is carried =…

Q: Fabulous Company provided the following data concerning cash on July 31: Checks drawn Bank statement…

A: The bank reconciliation statement (BRS) is prepared to reconcile the balance of the passbook and the…

Q: What is hard currency?

A: Hard currency: It alludes to cash published by a country seen as politically and financially steady.

Q: Explain different methods for cash transactions, and the costs associated with each.How these costs…

A: Cash transaction is referred as the transaction, which used to involve an immediate an outflow of…

Q: What is the view of new classical about money neutrality?

A: INTRODUCTION: Money, according to the neutrality of money theory, is a "neutral" component that has…

Q: What is cash payment

A: The process by which financial transactions of the business are recorded and communicated with the…

Q: Explain the term Cash Equivalency?

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

Q: Explain and critically evaluate advantages and disadvantages of fiat money.

A: US dollar, Australian dollar, New Zealand dollar,..... are all fiat currencies , meaning that the…

Q: What are the different risks associated in the accounting of cash

A: The element of risk arises in each and every area and how well we can minimise or reduce the risk is…

Q: What is a "proof of cash? What purpose does it serve?

A: A four-column bank statement prepared by auditors is called proof of cash. It has a detailed…

Q: Reporting Cash Jenkins Company has the following items at year-end. Currency and coin in safe.…

A: Cash and Cash equivalent:   The liquid current assets under balance sheet assets side are cash and…

Q: credibillity of monetary policies

A: Monetary policy is a policy formulated by the central bank of a country. It stabilizes the supply of…

Q: Why should we count all cash at the same time?

A: It is necessary to count all cash at the same time to match physical balance with book balance. Cash…

Q: Its difficult for payments bank to survive in long run ?

A: Payment banks- Meaning Carry out most of the banking operations but are not allowed to provide loans…

Q: What is discounting and why do we discount future cash flows?

A: A cash flow statement is a financial statement that shows how much cash and cash equivalents are…

Q: posit multiplier and money multiplier ? Explain.

A: Deposit Expansion Multiplier System The deposit expansion multiplier is also known as Deposit…

Q: What is temporary cash surplus and what should be done with it?

A: Cash is a form of money that is widely accepted in exchange for goods, services, or other financial…

Q: why is commercial paper considered as cash equivalent?

A: Cash equivalent includes: Commercial paper Certificate of deposits Treasury bills Money market…

Q: Why is cash management important?

A: Cash management is a technique used to manage cash of the entity. It helps in managing the cash that…

Q: What is the incremental cash flows from switching credit policies?

A: Incremental cash flow is the extra cash flow a business will generate by investment in a new project…

Q: What is the traditional cash equivalency approach used to determine how below-market-rate loans…

A: Introduction: The given question is related to the concept of real estate finance and investments.…

Q: The cash balance of Mendoza Company consists of the following on December 31, 2020: Cash on hand,…

A: A cash balance is the amount of money that a corporation currently has on hand. This money is held…

Q: Why does Cash often is called a nonearning asset?

A: Non-earning assets are assets that don't create returns. These may incorporate cash put resources…

Q: hy is not a bad thing to have negative cash from financing activities?

A: The cash flow statement depicts how the company's financial situation has evolved over time. Cash is…

Q: What is economic extortion?

A:

Q: How does credit policy affect the cash conversioncycle as discussed in the last chapter?

A: Cash Conversion Cycle measures the number of days it takes for a company to convert its inventory…

Q: What is Fiat money? What are the characteristics of ‘good currency or money?

A: The Fiat currency is reflective of a type of currency which is not backed by any commodity and it is…

Q: Explain different methods for cash transactions and the costs associated with each. How these costs…

A: Cash-basis of accounting- When transactions are made in cash, the cash basis of accounting is used…

Q: Explain in detail with examples of different methods for cash transactions, and the costs associated…

A: Accounting on a cash basis: When transactions are done in cash, the cash basis of accounting is…