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Objectives Cash Management academic assistance through online tutoring

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objectives cash management academic assistance through online tutoring

 

What Are Cash Management And Various Types Of Cash Flow Activities?

Cash management is the process of accumulating and managing cash flows which are significant for both individuals as well as businesses. Both of them have a wide array of offerings available across the financial marketplace to serve with all types of cash management needs. Cash management is the key to gain financial stability.

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In business, companies have a multitude of cash inflows and outflows that must be sensibly managed to meet payment obligations and maintain adequate business stability. For individuals, maintaining cash balances while also earning a return on idle cash are customarily top concerns.

Three Different Types of Cash Flow Activities

  • Operating activities- This activity includes cash inflow and outflow related to net income. For example, cash generated from the sale of goods will be known as revenue, and cash paid for merchandise are operating activities will be called sales because revenues and expenses both are incorporated in net income.
  • Investing activities - This cash flow activity embodies the pursuit of noncurrent assets that carry long-term investments, property, plant, and equipment, and the principal amount of loans made to other entities. For example, cash generated from the sale of land and cash paid for an investment in another company is a segment of investing activities.
  • Financing activities - This activity of cash flow comprises cash activities related to noncurrent liabilities and owners equity which generally are the principal amount of long-term debt, stock sales and repurchases, and dividend payments.
objectives cash management assignment

 

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Objectives Cash Management academic assistance through online tutoring Objectives Cash Management academic assistance through online tutoring

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