The consolidation of cash flow decisions within a multi-faceted company or conglomerate to a central authority for the purposes of achieving greater control of intra-company cash balances. The ability to control subsidiary surpluses reduces the need to cover cash shortages with short-term loans.
Converting a financial instrument (such as a check, draft, guarantee, insurance policy, or share) into cash.
Check written by a bank (or other financial institution) on its own funds, and signed by the bank's cashier or other such officer. Cashier's check is used mainly for disbursing proceeds of a loan to a customer, or to a third-party named by the customer. In contrast, a certified check is drawn on ...
Measure of yield on an investment in securities. Computed as the ratio of the annual income from an investment to the amount invested, it is applied usually where it is difficult to estimate the market value of the investment or where no resale-market (secondary market) exists. See also current ...
money and notes, kept to pay small amounts but not deposited in the bank
Cash in actual possession; also called cash-in-hand or cash-on-hand.
Indicates a firm's efficiency in its use of cash for generation of sales revenue. It is the inverse of cash-to-sales ratio. Formula: Sales revenue (at the end of a period) ÷ average cash balance (in the same period).
Number of cash cycles completed in one accounting period (usually one year).
