Asked by Victoria Matthews Medina on Jul 11, 2024
Verified
One of the objectives of the cash management process is to determine the Best way to invest the temporary excess cash reserves of the firm.
Cash Management
The process of collecting, managing, and investing a company's cash flow in a way that maintains or increases the company's liquidity.
Temporary Excess Cash
Surplus cash not required for immediate operational or investment needs, often invested in short-term securities.
Invest
The act of allocating resources, usually money, in order to generate an income or profit.
- Comprehend the goals of managing cash flow, including techniques for efficient cash management and investment strategies.
Verified Answer
KG
Kanika GoinsJul 14, 2024
Final Answer :
True
Explanation :
The cash management process aims to manage a firm's short-term assets and liabilities efficiently, including determining the best ways to invest temporary excess cash reserves to optimize returns while maintaining liquidity.
Learning Objectives
- Comprehend the goals of managing cash flow, including techniques for efficient cash management and investment strategies.