The process of coordinating cash inflows and outflows among subsidiaries so that only net cash is transferred is known as multilateral netting.

Question

Quizplus · Accepted Answer

Multilateral netting is a process of offsetting cash inflows and outflows among subsidiaries so that only the net amount is transferred, reducing transaction costs and minimizing the transfer of cash between entities.

The Process of Coordinating Cash Inflows and Outflows Among Subsidiaries