Topic
Uses of Cash
Instructions
- Describe the uses and sources of cash.
- Describe the characteristics of the operating cycle and the cash cycle.
- Explain how the cash budget is used in short-term financial planning.
Answer preview
There are various uses of cash. First cash is used as measure of value. This implies that other non-cash items are measured using cash. For example, a non-cash item such as car is valued in monetary terms. Cash is also used as a tool of trade.
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