Cash Management - Financial Accounting

The video discusses cash management in business, focusing on two main strategies: planning cash receipts to meet payments and maintaining a minimum level of cash necessary for operations. The goal is to avoid debt and invest surplus cash to generate more income. Key principles include ensuring sufficient cash for obligations and investing excess cash wisely.

What are the two key approaches to cash management in business?

Why is it important to plan cash receipts to meet cash payments?

How can a business make money from its cash instead of letting it sit idle?

What is the significance of keeping a minimum level of cash on hand?

What should a business do with the excess cash after maintaining the minimum level?