August 2014
Intermediate to advanced
304 pages
7h 18m
English
This chapter covers these topics:
CASH INCLUDES ANY GENERALLY ACCEPTED form of payment, including coin and currency, checks, and the electronic mechanisms of Fedwire and ACH. In this chapter we focus on these cash transaction forms, as they are in the widest use in business. The use of cash to complete business transactions is the obvious essential element in operating any company. We expect to be paid in cash or its equivalent when we sell our goods and services, and we know our employees and vendors will only accept similar methods of compensation when we pay our bills.
There are three forms of cash, each of which has to be proactively managed to attain the optimal working capital position: