Cash is often referred to as a "non-earning" asset.Thus, one goal of cash management is to minimize the amount of cash necessary for conducting a firm's normal business activities.

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Cash is considered a non-earning asset because it does not generate any significant return on investment. Therefore, firms seek to manage their cash effectively to minimize the amount of cash sitting idle and not being used for business activities.

Cash Is Often Referred to as a "Non-Earning" Asset