Cash management system objectives include
A)maintaining sufficient cash to meet disbursal needs.
B)maintaining idle cash balances at "doomsday event" levels.
C)maintaining accounts payable balances at zero by early bill payment.
D)all of the above are objectives of the system.

Question

Quizplus · Accepted Answer

The objective of a cash management system is to maintain sufficient cash to meet disbursal needs. Option B is incorrect as maintaining idle cash balances at "doomsday event" levels is not a practical objective. Option C is also incorrect as maintaining accounts payable balances at zero by early bill payment may not be feasible and may result in additional costs.

Cash Management System Objectives Include