Cash Positions: What You Need to Know What are the 3 main areas of corporate finance? The three main areas of corporate finance are capital budgeting, capital structure, and working capital management.
1. Capital budgeting is the process of planning and deciding which long-term investments a company should make. This includes decisions such as whether to invest in new equipment, open a new factory, or buy another company.
2. Capital structure is the mix of a company's debt and equity. This includes decisions such as how much debt to take on, whether to issue new shares of stock, and how to use cash reserves.
3. Working capital management is the process of managing a company's short-term assets and liabilities. This includes decisions such as how much inventory to keep on hand, how to manage accounts receivable and payable, and how to finance short-term needs. What are the terminologies of cash? 1. Accounts Receivable (A/R): This is the amount of money that a company is owed by its customers for goods or services that have been provided on credit.
2. Accounts Payable (A/P): This is the amount of money that a company owes to its suppliers for goods or services that have been received on credit.
3. Petty Cash: This is a small amount of cash that is kept on hand for meeting small, unexpected expenses.
4. Cash in Hand: This is the amount of cash that a company has on hand at any given time.
5. Cash in Bank: This is the amount of cash that a company has deposited in a bank account.
What is the best strategy regarding cash position? There is no one-size-fits-all answer to this question, as the best strategy regarding cash position will vary depending on the specific circumstances of the company in question. However, some general guidelines that companies may want to consider include maintaining a strong cash position in order to be able to weather unexpected expenses or downturns in the business, and investing excess cash in short-term investments such as Treasury bills or money market funds in order to earn a return on it. What are the 4 general areas of finance? There are four general areas of finance:
1. Financial planning
2. Financial management
3. Financial analysis
4. Financial decision-making
What are the three types of cash?
1. Operating cash flow: This is the cash that is generated from the day-to-day operations of the business. It includes things like revenue from sales, payments from customers, and money spent on things like inventory and wages.
2. Investing cash flow: This is the cash that is generated from the sale of investments or from the reinvestment of profits.
3. Financing cash flow: This is the cash that is generated from sources outside of the business, such as loans, equity investments, or the sale of bonds.