Business, 13.12.2019 00:31 rederisbetter7637

Determine whether each policy below is good or bad cash management; then identify the cash management strategy violated or followed for each policy. bills are paid as soon as they are received. cash receipts and cash payments are regularly planned and reviewed. excess cash is put in checking accounts, earning no interest income. customers are regularly allowed to pay after due dates. rarely used equipment is rented rather than purchased.

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Answer from: Ateruel95

Consider the following explanation

Explanation:

1. Rarely used equipment is rented rather than purchased. Good. If the Fixed asset is rarely used, it should be rented. It would save money.

2. Cash receipts and cash payments are regularly planned and reviewed.Good. Cash planning helps to pay expenditures and minimizes borrowing costs

3. Bills are paid as soon as they are received. Bad. It reduces the Operating Cash Balances. It should pay bills when they are due .

4. Customers are offered discounts to pay early. Good. It would help to collect accounts receivable earlier .

5. Excess cash is put into short-term investments to earn extra income.Good. Idle cash is invested in Short-term investments to earn extra income and the liquidity.

Answer from: Quest

The most common form of non profit organisation is 501 (c)(3).

Answer from: Quest

1 all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

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Determine whether each policy below is good or bad cash management; then identify the cash manageme...

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