The objective of managing cash inflows is to decrease the float while the objective of managing cash outflows is to increase the float.

Question

Quizplus · Accepted Answer

Managing cash inflows aims to decrease the float by speeding up the collection process, ensuring funds are available faster. Conversely, managing cash outflows seeks to increase the float by delaying payments as long as possible without incurring penalties, thus keeping money in the account longer and improving cash flow.

The Objective of Managing Cash Inflows Is to Decrease the Float