Advantage Of Cash In Business

840 Words4 Pages
In business the current assets includes cash. Cash is necessary for going concern. It should be kept sufficiently for meeting the obligation. In case shortage of cash occurs then it will slow down the operation of the business & in case any excess of it then it is unproductive. In assets, cash is more unproductive i.e. it doesn’t contribute anything to business, while fixed assets like plant, machinery etc. & in current assets such as inventory will add to business earning capacity. The money can be explained in two terms – Narrow sense – it includes the actual or real cash which is in the form of coins, banknotes & bank projects by way of deposits & on demand availability Broader sense – It deals with marketable stocks which can be converted…show more content…
It is the basic need of the business for making it run on regular basis & for infinity time: it is the beginning & final output of the firm in order to purchase raw materials, payment to service providers & at the time of executing the sales & its expenses. The business should have optimal fund neither excess nor deficit. Cash deficit will disturb the operation of manufacturing activities & surplus cash will remain idle, where the cash won’t add any value to firms earnings. Thus, a main task of financial officer is to manage cash position properly. When the company makes capital structure before getting real cash money provider that can make many adjustments to reduce your overall risk. SL.NO Reasons for Selection of Topic Summary 1 To study the financial performance of the company with the help of Cash management. The topic of cash management at work is getting wider attention at this time. Cash management is satisfaction one feels while doing job. Cash management is one of the important factors, which affect not only the internal factor but also affect to business environment .cash management is the result of healthy business running. 2 To study the particular reasons for holding cash 3 To study the balance between the sources or Receipts and uses or payments of cash. 4 Understanding the required cash & its arrangement…show more content…
3 Due to busy schedules can’t communicate with all officers. Objectives of the Study The objective of the study is to examine the relationship between job satisfaction and employees performance and to analyze how these affect employees in the organization. Sr.No Objectives Benefit to the Organization and Research 1 To study the financial performance of the company with the help of Cash management. The study indicates the organization on get financial position of organizational in present financial it includes profit or loss and cost of organization. Benefit is organization come to know the financial position. 2 Understanding the requirement of cash and arranging for it. The study objective provides organization come to know the how much expenses and payments need to do to the vender or customer or supplier. 3 To study the particular reasons for holding cash. The study gives direction on holding cash due to vendor or supplier payment or salary to employee or purchase of stationary. 4 To analyze the balance between the inflows and outflows of cash. 5 To know the liquidity position of the
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