Cash is a vulnerable asset

Q: Describe about the cash flow risk.

A: Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a…

Q: Why does cash require some specific internal controls?a. Most transactions ultimately affect cash.b.…

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: What is a cash flow hedge?

A:

Q: One problem with free cash flow method is gives too much weight to countinung value. Do you agree

A: Answer :- YES

Q: what are usefulness and weakness of discounted cash flow method?

A: Discounted Cashflow Method is the Method in which we compare Initial Project cost with expected…

Q: What condition regarding cash flows would cause more than oneIRR to exist?

A: IRR (Internal Rate of Return) is the interest rate where net present value of a project equals to…

Q: Define cash larceny.

A: Cash: Cash is the money which is readily available in the form of currency. Since cash can be easily…

Q: What is a financial security?

A: Investors use financial security to be secured financially as they can get some income on periodic…

Q: What are free cash flows?

A: Companies always estimate cash flows to know the financial conditions of the company because it is a…

Q: Define Restricted Cash.

A: Restricted cash refers to money that is held for a specific purpose and therefore not available to…

Q: In the axiom:" Cash not profit is King", cash is more important that profit. * Right O Wrong

A: There are 2 types of accounting methods: Cash

Q: What is financial risk?

A: Risk refers to the undesired consequences arises due to the uncertainty. In other words, risk refers…

Q: echnical problems associated with the internal rate of return include:

A: IRR (Internal Rate of Return): It is the rate of return that makes the net present value of the…

Q: A asset is one which can be quickly converted into cash without significant loss in value.

A: An asset is a resource which is owned by the company in order to operate the functions and…

Q: What is the purpose of a cash flow hedge?

A:

Q: To qualify as cash equivalents, the investment must be:

A: Cash Equivalent: Cash equivalent is highly liquid, short term investments, which could be held by a…

Q: What is the importance of liquidity?

A: Introduction: Liquidity is nothing but the ability of the bank to turn money into cash and to be…

Q: How can we estimate Risky Cash Flow?

A: Companies always predict the cash flows related with the project because it helps to company to…

Q: Cash flows cannot be added together unless

A: The concept of time value of money states that value of money and hence value of cash flows changes…

Q: What is irregular cash flow stream?

A: Cash Flow has a flow concept. There can either be cash inflow or cash outflow. Generally, for…

Q: Why is it preferable to receive cash sooner rather than later?

A: Definition:   Time value of money: The time value is measured with the difference between an…

Q: Negative cash flow to creditors

A: The 3 main components of the cash flow statement are as follows: Cash from operating activities…

Q: Explain common techniques employed to control cash.

A: Cash: Cash is the money which is readily available in the form of currency. Since cash can be easily…

Q: What is discounting and why do we discount future cash flows?

A: A cash flow statement is a financial statement that shows how much cash and cash equivalents are…

Q: What is Equilant cash value?

A: Cash and cash equivalents alludes to the detail on the balance sheet that reports the estimation of…

Q: What does mangment want to achieve when it tries to "ensure liquidity" and  "maintain solvency "?

A: Companies do maintain sufficient liquidity to maintain the day-to-day operations of the entity. It…

Q: 3. What are some other potential cash inflowsbesides collections?

A: Cash inflow means that money goes into a company. Sales, investment, or funding may be. It's the…

Q: Is Cash an asset?

A: In financial accounting terms, Asset is any resource owned by the company or the entity for which…

Q: Two areas of Weakness in handling cash

A: Internal control weakness implies a failure in the implementation of internal control systems of the…

Q: disadvantages

A: Meaning of Discounted Cashflow Analysis Discounted cash flow (DCF) is a valuation method used to…

Q: What are the strenghts and weaknesses of the discount cash flow methods?

A: discounted cash flow methods are used to calculate to find the future cash inflow discount into its…

Q: Why are the cash flows so difficult to estimate accurately?

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: ations a

A: The growth or decrease in the quantity of money a firm, organisation, or individual has is referred…

Q: Describe the development of discounted cash flow techniques (DCFs)?

A: The question is based on the concept of discounted cash flow techniques , which is generally used in…

Q: Why is cash management important?

A: Cash management is a technique used to manage cash of the entity. It helps in managing the cash that…

Q: Explain the Hedging against cash flow risk.

A: Hedging is a strategy by which a financial instrument is used to minimize the risk created by the…

Q: What does a negative Cash Flow from Assets ( CFFA) indicate?

A: Cash flows are an integral part of any business. To keep operating, businesses require positive cash…

Q: Why does Cash often is called a nonearning asset?

A: Non-earning assets are assets that don't create returns. These may incorporate cash put resources…

Q: hy is not a bad thing to have negative cash from financing activities?

A: The cash flow statement depicts how the company's financial situation has evolved over time. Cash is…

Q: When determining cash flows, what is cannibalism?

A: Cannibalism is a tangible occurrence and a problem for most of the companies when determining cash…

Q: What is the essence of the discounted cash flow methods?

A:

Q: any risk attached to a financial asset should not be considered when making an investment decision…

A: Financial asset A financial asset is referred to as a liquid asset that features stocks, bonds, bank…

Q: What are the strenghts and weaknesses of the Discounted Cash Flow methods

A: Cash flow is the movement of money from a particular investment. Discounted cash flows mean…