St. Antony’s College of Arts and Sciences for Women b) Define Cash.

Thamaraipadi, Dindigul 10.a) Explain the important motives for holding cash.
III Internal Examination b) Explain the objectives of Cash management
Business Finance 11. a) How can a firm avoid cash deficit
Class: II B.Com & B.Com CA Time: b) Briefly discuss the factors determining the amount of
Date: /02/2020 Hours: 1.30 hrs cash requirements of a firm
Part- A 12.a) Explain Cash budget
I. Answer the following Questions: (8x1=8) b) What are ways for utilization of cash surplus?
1. Holding cash to meet out the expenditure is called PART-C
___________ motive. III. Answer any TWO from the following (2x15=30)
a) Profit motive b) Transaction motive c)both a&b 13. Explain the different types of marketable securities
2.The transaction cost refers to the cost involved in conversion 14. Write short notes on:
of marketable securities into _______ 1. Commercial paper 2. Global Depository Receipts
a) cash b) share c) debenture 3. Factoring 4. Treasury securities 5. Banker’s Acceptance
3. cash includes 15. A company is expecting to have Rs.2,50,000 Cash in hand
a) coins b) currency notes c) cheques d) all the above on I st April 2008, and it requires you to prepare an estimate of
4. Carrying cost refers to the cost of holding cash like _____ on cash position during the three months, April-June 2008.
marketing securities
a) interest b) payment c)dividend Month Sales Purchas Wages Expenses
5. In broder sense cash includes _______ (Rs) e (Rs) (Rs)
a) near current assests b) near cash assests c) near current (Rs)
liablities Februar 7,00,000 4,00,000 80,000 60,000
6. ______motive refers to maintaining adequate cash to meet y
out unexpected cash needs March 8,00,000 5,00,000 80,000 70,000
a) To prevent from loss b) precautionary c)both a and b April 9,20,000 5,20,000 90,000 70,000
7. The objective of cash management is to maintain an______ May 10,00,000 6,00,000 1,00,000 80,000
level of cash June 12,00,000 5,00,000 1,20,000 90,000
a) optimum b) minimum level c) profit level
8. Cash budget is useful to forecast the Additional Information
a) receipts and payment b) income and expenditure 1. Period of Credit allowed by Suppliers is two months
c)cash purchase d) cash sales 2. 25% of sale is for cash and the period of credit
II. Answer the following Questions: (4x3=12) allowed to customer for credit sale is one month.
9. a) What you understand by cash management?
3. Delay in Payment of wages and expenses is one
month
4. Income tax Rs.2,50,000 is to be Paid in June 2009.
16. What are ways for Utilization of cash Surplus?