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What is Understanding Cash in Business about?

There are three main motives for companies to hold cash: transactional, precautionary, and speculative. The objectives of cash management are to minimize idle cash and maximize returns. Companies use models like inventory, stochastic, and probability approaches to determine their optimal cash levels. Accounting standards require companies to prepare a cash flow statement classifying cash flows into operating, investing and financing activities to provide information on a company

Author

Shashi Kant Singh

Language

EN