Cash Management System Objectives Include

question 79

Multiple Choice

Cash management system objectives include

• A) maintaining sufficient cash to meet disbursal needs.
• B) maintaining idle cash balances at "doomsday event" levels.
• C) maintaining accounts payable balances at zero by early bill payment.
• D) All of the above are objectives of the system.

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Definitions:

Accounting Cycle

The series of steps followed by an organization to track and manage financial transactions, from the initial transaction to the closing of the books.

Special Journals

Special journals are accounting journals designed for recording specific types of transactions in a detailed manner, such as sales or purchases, to streamline the accounting process.

General Journal

A basic accounting ledger where all types of transactions are initially recorded, using a double-entry bookkeeping system, before being posted to specific accounts in the general ledger.

Sales Journal

A specialized accounting journal used to record all sales of merchandise on credit.