{"id":55184,"date":"2024-04-16T00:23:04","date_gmt":"2024-04-16T00:23:04","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=55184"},"modified":"2024-04-16T00:23:04","modified_gmt":"2024-04-16T00:23:04","slug":"which-of-the-following-is-not-an-objective-of-cash-management","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-is-not-an-objective-of-cash-management\/","title":{"rendered":"Which of the following is not an objective of cash management?"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Maximization of cash balance&#8221; option2=&#8221;Minimization of cash balance&#8221; option3=&#8221;Optimization of cash balance&#8221; option4=&#8221;Zero cash balance&#8221; correct=&#8221;option4&#8243;]<!--more--><\/p>\n<p>The correct answer is D. Zero cash balance.<\/p>\n<p>Cash management is the process of controlling and managing a company&#8217;s cash flow. The objectives of cash management are to:<\/p>\n<ul>\n<li>Maximize the return on cash.<\/li>\n<li>Minimize the risk of cash shortages.<\/li>\n<li>Optimize the level of cash balances.<\/li>\n<\/ul>\n<p>A zero cash balance is not an objective of cash management because it would expose the company to a high risk of cash shortages. A company needs to have a certain amount of cash on hand to meet its day-to-day operating expenses and to take advantage of unexpected opportunities.<\/p>\n<p>A company can maximize the return on cash by investing it in short-term, high-yield securities. A company can minimize the risk of cash shortages by forecasting its cash needs and developing a cash management plan. A company can optimize the level of cash balances by balancing the need to have enough cash on hand to meet its obligations with the need to earn a return on its cash.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Maximization of cash balance&#8221; option2=&#8221;Minimization of cash balance&#8221; option3=&#8221;Optimization of cash balance&#8221; option4=&#8221;Zero cash balance&#8221; correct=&#8221;option4&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-55184","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which of the following is not an objective of cash management?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-is-not-an-objective-of-cash-management\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which of the following is not an objective of cash management?\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Maximization of cash balance&#8221; 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