Asked by Zachary Wages on Jul 08, 2024
Verified
The practice of and procedures for moving cash from multiple banks into a firm's centralized bank account(s) is known as _____________.
A) Cash concentration.
B) Strategic cash disbursement.
C) Transfer flotation.
D) Payables management.
E) Float management.
Cash Concentration
The process of consolidating cash from multiple accounts into a single account, aiming to improve the efficiency of cash management and reduce transaction costs.
Centralized Bank Account
A single bank account used by a company to manage and control all payments and receipts, simplifying cash management.
- Understand the approaches and utilities for improving liquidity balances and managing float with efficiency.
- Understand the effects of strategies for cash concentration and collection on a company's liquidity.
Verified Answer
BS
brittany searsJul 09, 2024
Final Answer :
A
Explanation :
Cash concentration refers to the practice and procedures involved in consolidating cash from various bank accounts into a firm's main or centralized bank accounts. This process helps in managing liquidity more efficiently.
Learning Objectives
- Understand the approaches and utilities for improving liquidity balances and managing float with efficiency.
- Understand the effects of strategies for cash concentration and collection on a company's liquidity.