Cash Management Can Be Enhanced Using a Process Where Payments

question 18

Multiple Choice

Cash management can be enhanced using a process where payments and receipts between affiliates are recorded but the actual transfer of funds involves net amounts only for amounts owed between affiliates.The system is known as

• A) centralized cash management.
• B) multilateral netting.
• C) lagging accounts payables.
• D) leading accounts receivables.

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Definitions:

Money Market Accounts

Accounts that offer higher interest rates than standard bank rates but with greater restrictions.