Finance

Significances of Cash Management

Significances of Cash Management

Cash management is concerned with the management of cash in such a way as to achieve the generally accepted objectives of the firm- maximum profitability with maximum liquidity of the firm.  It also includes the matters relating to financing of deficit and investment of surplus cash so as to mai.....

Read More »

Motives for Holding Cash

Motives for Holding Cash

Cash is known as most liquid and less productive assets of a firm. If cash remains idle, earns nothing but involves a cost in terms of interest payable to finance it. The Motives for Holding Cash is simple, the cash inflows and outflows are not well synchronized. This includes keeping money in fo.....

Read More »

Benefits of Holding Adequate Cash

Benefits of Holding Adequate Cash

Benefits of Holding Adequate Cash Cash should not be held more or less than a requirement and it must be just adequate. Firm’s need cash because a company cannot remain solvent if its expenses exceed its income. Keeping a portion of your money in liquid form means you’ll have cash availab.....

Read More »

Functions of Cash Management

Functions of Cash Management

Cash management is concerned with the management of cash inflows, outflows and cash flows within the firm. It also includes the matters relating to financing of deficit and investment of surplus cash so as to maintain an optimum cash balance. Cash management refers to a broad area of finance invo.....

Read More »

Importance of Inventory Management

Importance of Inventory Management

Importance of Inventory Management Inventory is defined as a stock or store of goods. The term inventory refers to the goods or materials used by a firm for the purpose of production and sale. It is the management of inventory and stock. It also includes the items, which are used as support mater.....

Read More »

Objectives of Holding Inventories

Objectives of Holding Inventories

A manufacturing company requires many types of material to produce any goods or service. Every firm must hold adequate inventory. The main objective of holding inventories is to reduce the cost associated with investment in inventory and maintaining efficiency in production and sales operations. .....

Read More »

Which Factors affecting the Size of Investment in Inventories?

Which Factors affecting the Size of Investment in Inventories?

Inventory investment is often a component of an uncouth domestic product. Precisely what is produced in a specific country is obviously also sold sooner or later, but some with the goods produced inside a given year may be sold in a new later year in lieu of in the year they were holding produced.....

Read More »

Purpose of Receivable Management

Purpose of Receivable Management

Receivables also termed as trade credit or debtors are components of current assets. When a firm sells its product in credit, account receivables are created. It is shown on its balance sheet as an asset. It is one of a series of accounts dealing with the billing of a customer for goods and servi.....

Read More »

Introduction to Receivable Management

Introduction to Receivable Management

Introduction to Receivable Management Receivables also termed as trade credit or debtors are components of current assets. When a firm sells its product in credit, account receivables are created. It represents money owed to a business by its clients (customers). It is shown on its balance sheet .....

Read More »

Responsibilities of the Credit Manager

Responsibilities of the Credit Manager

Responsibilities of the Credit Manager The person who gives the final approval for loan or credit is known as the credit manager. Investment in account receivable of any firm depends on how much it sells in credit and how long it takes for the collection of receivables. The credit managers give t.....

Read More »

Costs of Maintaining Receivables and their Calculation

Costs of Maintaining Receivables and their Calculation

Receivables represent the amounts owed to the company as a result of sales of goods and services in the normal course of business. The size of investment in receivables is influenced by a number of factors. Among them two factors, the volume of credit sales, and the average length of time between.....

Read More »

What are the Determinants of Investment in Receivables?

What are the Determinants of Investment in Receivables?

Determinants of Investment in Receivables – Receivables represent the amounts owed to the company as a result of sales of goods and services in the normal course of business.  The size of investment in receivables is influenced by a number of factors. Among them two factors, the volume of .....

Read More »