Which of the following presents an effective technique to improve cash management?
A)Speed up both collections and payments of cash.
B)Speed up cash payments and slow down cash collections.
C)Slow down both the payment and collections of cash.
D)Speed up cash collections and slow down cash payments.

Question

Quizplus · Accepted Answer

Speeding up the collections of cash and slowing down the payments of cash is the most effective technique to improve cash management. This strategy helps maintain a positive cash flow and ensures that there is enough cash on hand to meet expenses and invest in growth opportunities. A slow payment strategy also helps build relationships with vendors and suppliers, making them more willing to offer favorable payment terms in the future.

Which of the Following Presents an Effective Technique to Improve