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referencing this site is the at and most important the same time least productive property held by the organization. Its used to pay the firms obligations. Its hard to predict income accurately. No excellent relationship exists between cash outflows and cash inflows. Income constitutes the smallest part of the total current asset, yet managements lots of time is devoted in handling it. Money management cycle is a pattern of generation of cash flows from various sources and disbursement of cash to meet various expenses. According to this pattern, fast cash advance generated through sales must be employed to make payment for the payment of various charges and for the purchase of goods and so on. Credit is resorted to when there is deficit (excess of cash payment over and above the cash collections). Also excess cash is committed to high yielding liquid assets. To improve the efficiency of rapid referencing this site, expenditures and collections must be correctly administered. Frequently theres a time lag between the the sending of bills and dispatch of goods or provision of service. By preparing and giving the bills promptly, a company can ensure early remittance. It should be recognized that its in the part of payment that the companys control is large and there is a sizeable chance to release money.