The-definition.com

Definition

Cash management

Cash management is concerned with the meaning of :

(i) Cash flows into and out of the firm.

(ii)Cash flows within the firm and

(iii)Cash balances held by the firm at a point of time by financing deficit or investing surplus cash.

According to Van Horne,” Cash management involves the efficient collection, disbursement and temporary investment of cash”

According to Schall and Haley,” The term cash management refers to the general problem of managing firm’s cash balance, cash flows and short term investments securities.”

Share it:  Cite

More from this Section

  • Balance sheet bedge
    Balance sheet bedge is a technique to minimize translation exposure; speculating in the ...
  • Multilateral Netting
    Multilateral netting is defined as the process that cancels via offset all or part of ...
  • Currency diversification
    Currency diversification refers to the process of using more than one currency as an investing ...
  • Interest rate risk
    The danger that shifting interest rates could adversely affect the bank’s net interest ...
  • Ability to pay
    Ability to pay refers to the borrower's ability to make interest and principal payments ...