Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword or section
Like this
2Activity
P. 1
Module 2 AFM Cash Management

Module 2 AFM Cash Management

Ratings: (0)|Views: 105 |Likes:
Published by vis_gkk

More info:

Published by: vis_gkk on Sep 15, 2010
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PPT, PDF, TXT or read online from Scribd
See more
See less

10/31/2011

pdf

text

original

 
Cash management
 
I
ntroduction
Cash management is one of the key areas of workingcapital management.Apart from the fact that it is the most liquid current asset,cash is the common denominator to which all currentassets can be reduced because the other major liquidasset, that is, receivables and inventory get eventuallyconverted into cash.This underlines the significance of cash management.Cash is the ready currency to which all liquid assets canbe reduced.Near cash implies marketable securities viewed the wayas cash because of their high liquidity.
 
M
otives for holding cash
Transaction motivePrecautionary motivesSpeculative motivesCompensating motives

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->