Which one of the following best defines cash concentration?
A)Combining all of a firm's receipts into one bank deposit
B)Combining a week's worth of cash receipts into one bank deposit
C)Combining cash from multiple banks into a firm's main bank accounts
D)Using multiple lockboxes for collecting cash payments
E)Combining a firm's bills so that disbursement checks are mailed only monthly

Question

Quizplus · Accepted Answer

Cash concentration refers to the process of collecting funds from multiple bank accounts and consolidating them into a centralized account. This helps in optimizing cash management and minimizing idle cash balances. Choice C is the only option that matches this definition.

Which One of the Following Best Defines Cash Concentration