Current Assets Management Business & Marketing Essay (Essay Sample)

Current Assets Management
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Definition of Current Assets
Current assets usually include cash, equivalents, to capital, accounts receivables and also stock inventory. In other words, current assets are those assets which can be easily converted into cash within a specified time at most one year. Relatively, the specified time can be defined as the operating cycle which begins when a company invests cash in raw materials which have been used in the production of its gods hence ends up with the money collected from the sale of those goods.
Management of Cash
Management of cash is essential to any developing business. It entails cash collection and payments from different sources, for example, public funds. The main objective of cash management is to be in a position to manage both cash balances and cash invested for the essence of the control of the cash balances and strategies of the short-term investment. Essentially, cash management is an essential aspect in a company because if a company fails to meet its obligation due to lack of cash, the company can go bankrupt. Besides, proper cash management improves the profitability of the firm.