Which of the following is a principle of good cash management?

Question

Quizplus · Accepted Answer

Investing surplus cash is a principle of good cash management as it allows a company to earn a return on its idle cash, increasing its overall financial position. Keeping inventory levels high and paying creditors earlier than the due date may lead to cash shortages, which can hurt a company's financial position. Offering large discounts to debtors to pay within 30 days may improve cash flow in the short term, but it may also reduce profit margins in the long run.

Which of the Following Is a Principle of Good Cash