Which of the following practices contributes to efficient cash management?

Question

Quizplus · Accepted Answer

Preparing monthly forecasts of planned cash receipts, payments, and anticipated balances up to a year in advance is a crucial practice for efficient cash management. This helps a business to plan and manage its cash flow effectively, as it provides insight into the expected cash inflows and outflows. It ensures that the business has enough cash on hand to meet its financial obligations without relying on short-term borrowing or delaying payments. The other options are not ideal for efficient cash management - A suggests not utilizing credit facilities, B delays recording transactions, and D suggests paying bills immediately without regard to cash flow needs.

Which of the Following Practices Contributes to Efficient Cash Management