Financial Management-Components of Working Capital [IAS (Admin.) Mains Commerce Accountancy]: Questions 1 - 2 of 2
Choose Programs:
📹 Video Course 2024 (60 Lectures [26 hrs : 37 mins]): Offline Support
Rs. 160.00 -OR-
1 Month Validity (Multiple Devices)
Preview All LecturesDetails
🎓 Study Material (217 Notes): 2024-2025 Syllabus
Rs. 400.00 -OR-
3 Year Validity (Multiple Devices)
Topic-wise Notes & SampleDetails
🎯 302 Questions (& PYQs) with Full Explanations (2024-2025 Exam)
Rs. 750.00 -OR-
3 Year Validity (Multiple Devices)
CoverageDetailsSample Explanation
Help me Choose & Register (Watch Video) Already Subscribed?
Question 1
Describe in Detail Subjective▾
‘’ It is seen that a financial manager always tries to synchronise the cash inflows and cash outflows . But the situation is seldom found in the real world . Perfect synchronisation of receipts and payment of cash is only an ideal situation . ‘’ In the light of this statement Explain the Nature of cash. Also throw light on the motives for holding Cash.
EditExplanation
Cash
- Cash is one of current assets of a business. It includes cash in hand, cash at bank and sometimes marketable securities are also considered to be part of cash as these are securities which can easily be converted into cash.
- Cash itself does not produce goods or services. It is used as a medium to acquire other assets.
- A business has to keep requi…
… (437 more words, 6 figures) …
Question 2
Appeared in Year: 2020
Describe in Detail Subjective▾
Explain how with managerial intervention cash balance is maintained within limits using Miller and Orr Model. (Paper-I)
EditExplanation
The Miller and Orr Model is a cash management model developed by economists Merton Miller and Daniel Orr in 1966. The model provides a framework for determining the optimal level of cash balance that a company should maintain to minimize the costs of cash management.
The Miller and Orr Model assumes that a company՚s cash balance fluctuates randomly …
… (262 more words) …