Effective cash management and control includes all of the following except
A)the use of a petty cash fund.
B)bank reconciliations.
C)short-term investments of excess cash.
D)purchase of stocks and bonds.

Question

Quizplus · Accepted Answer

Purchase of stocks and bonds is not typically considered a part of effective cash management and control as it involves investing excess cash for potential future gains, whereas cash management is focused on ensuring that the business has enough cash available to meet its short-term obligations and expenses on a day-to-day basis. A, B, and C are all examples of methods that can be used to effectively manage and control cash flow.

Effective Cash Management and Control Includes All of the Following