[amp_mcq option1=”1, 2 and 3″ option2=”2, 3 and 4″ option3=”1, 3 and 4″ option4=”1, 2 and 4″ correct=”option4″]<\/p>\n
The correct answer is D. 1, 2 and 4.<\/p>\n
Cash flow management is the process of ensuring that a company has enough cash on hand to meet its obligations. It involves forecasting cash flows, managing accounts receivable and payable, and investing excess cash.<\/p>\n
A lock-box system is a system in which customers send payments directly to a post office box that is managed by the company’s bank. This allows the company to receive payments more quickly and reduces the risk of lost or stolen checks.<\/p>\n
Marketable securities are short-term investments that can be easily converted into cash. They are used to manage cash flow and to generate income.<\/p>\n
Playing the float is a strategy that involves delaying payments to suppliers and accelerating collections from customers. This can help to improve a company’s cash flow.<\/p>\n
A concentration bank account is a single account that is used to collect cash from multiple locations. This can help to reduce the amount of cash that a company needs to hold on hand.<\/p>\n
Here is a more detailed explanation of each option:<\/p>\n
Lock-box system: A lock-box system is a system in which customers send payments directly to a post office box that is managed by the company’s bank. This allows the company to receive payments more quickly and reduces the risk of lost or stolen checks.<\/p>\n<\/li>\n
Marketable securities: Marketable securities are short-term investments that can be easily converted into cash. They are used to manage cash flow and to generate income.<\/p>\n<\/li>\n
Playing the float: Playing the float is a strategy that involves delaying payments to suppliers and accelerating collections from customers. This can help to improve a company’s cash flow.<\/p>\n<\/li>\n
Concentration bank account: A concentration bank account is a single account that is used to collect cash from multiple locations. This can help to reduce the amount of cash that a company needs to hold on hand.<\/p>\n<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”1, 2 and 3″ option2=”2, 3 and 4″ option3=”1, 3 and 4″ option4=”1, 2 and 4″ correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[700],"tags":[],"class_list":["post-33756","post","type-post","status-publish","format-standard","hentry","category-business-finance","no-featured-image-padding"],"yoast_head":"\n