Determine whether each policy below is good or bad cash management; then identify the cash management strategy violated or followed for each policy.
a. The company negotiates credit terms with suppliers to delay payment of liabilities as long as possible.
b. Customers are regularly allowed to pay after due dates without concern.
c. Excess cash is put in checking accounts, earning no interest income.
d. Rarely used equipment is rented rather than purchased.
e. Cash receipts and cash payments are regularly planned and reviewed.
Answers: 2
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Determine whether each policy below is good or bad cash management; then identify the cash managemen...
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