• Cash is the most liquid current asset. 
    • Cash management is concerned primarily with the optimization of the amount of cash available while maximizing the interest earned by spare funds not required immediately.  Available cash includes:
  • Coins and notes
  • Money in current accounts and short-term deposits
  • Unused bank overdraft facility
  • Foreign currency; and
  • Deposits that can quickly be converted into the local currency
  • We should note that cash does not include stock; money owed by customers; and long-term deposits (if they cannot be withdrawn)

 

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