WorksheetsCA Inter C - 10 Cash Budget and Cash Management
Total questions: 15
Worksheet time: 12mins
A Cash management Scheme is a delicate balance between the twin objectives of _______________ and _______________.
Profitability , Wealth maximization
Liquidity and Wealth maximization
Profitability and Costs
Liquidity and Costs
3 Basic types of needs for cash
Transaction, Special and Personal
Translation, Speculative and Preparataury
Transaction, Speculative and Precautionary
None of these
Cash budget is the most significant device to _________ for and ____cash receipts and payments
ascertain, use
Source, Application
Plan, Control
Don’t know
Cash budget can be prepared in which of the following ways
Receipts and Payment Methods
Adjusted Income Method
Adjusted Balance Sheet Method
All three methods
Which Methods used by firms to accelerate cash collections
Concentration Banking
Virtual Banking
Lock Box Method
(a) and (c)
Which system has objective to eliminate the time between the receipts of remittance by the company and deposit in the bank
Concentration banking
Lock Box system
Both (a) and (b)
None of these
The time between the sale and the mailing of the invoice is the ________ float. _______________ is the time when a cheque is being processed by post office,messenger service or other means of delivery. _____________ is the time required for the seller to sort, record and deposit the cheque after it has been received by the company. ______________ is the time from the deposit of the cheque to the crediting of funds in the sellers accounts.
Billing Float, Cheque Processing float, Mail float and Banking processing float
Mail float, Cheque Processing float, Billing float and Banking processing float
Billing float, Mail float, Cheque processing float and Banking processing float
None of the above match the sequence required for the answer.
Which of the following indicate formula for determing optimum cash balance by William J Baumol’s EOQ (Where C = Optimum Cash balance, U = Annual or monthly cash disbursement, S = Opportuinity cost of one rupee p.a (or p.m) and P = Fixed cost per transaction)
C = P2US
C = S2UP
C = U2SP
Got confused
“C” in Q 5 of test paper is
52,100
25,010
25100
None of these
According to Miller Orr Cash management is completely _____________
Starcatic
Stochastic
Shocking
None of these fit the sentence
In Miller Orr Cash management When the cash balance reaches upper limit, the transfer of cash equal to _________________ is ______________in ____________________. (Where o = Lower control limit z = Return point and h = Upper control limit)
h-o, invested, marketable securities account
h-z, transferred, cash account
h-z, invested, marketable securities account
o-z, transferred, cash account
In Miller Orr Cash management When the cash balance touches lower limit, then ___________from _________________ to ______________is made (Where o = Lower control limit z = Return point and h = Upper control limit)
h-o, invested, marketable securities account
z-o, transferred, cash account
h-z, invested, marketable securities account
transfer, marketable securities account , cash account
As the working capital needs are fluctuating, it is possible to _________ excess funds in some __________________________, which can be _________________when need for cash is felt.
Invested, Long term securities, Transferred
Park, Short term securities, liquidated
Give, Property , rented or sold
All 3 can be done
In Safety principle for selection of marketable securities, investment is ensuring _____________________ , ______________ is the criterion of selection.
Maturity , marketability
Return, risk
Liquidity, Minimum risk
none of these
In Q.9 of the test answer of (a), (b) and (c) required parts are
Cash Cycle = 3 months, cash turnover = 4, Minimum operating cash = Rs. 120 Lacs and Saving = Rs. 10 Lac
Cash Cycle = 4 months, cash turnover = 3, Minimum operating cash = Rs. 30 Lacs and Saving = Rs. 1 Lac
Cash Cycle = 3 months, cash turnover = 4, Minimum operating cash = Rs. 30 Lacs and Saving = Rs. 1 Lac
None of these
