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accounting & finance
Principles of Asset Management
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Cards (3)
principles of asset managment?
maintain
up
to
date inventories to avoid
unnecessary replacement
which would
impact
cash
Ensure correct handling
of
cash
by
trained staff
;
separate roles
to
avoid
collusion
Understand limits
of
firm
and
staff
;
train
as
required
;
dont overcapitalise
->
impacts available cash
why would a firm need to maintain up to date inventory for appropriate managment of cash?
avoid
unneccessary
replacement
->
impacts
cash
precautions?
regular reconciliation
of
cash transactional
evidence
->
inconsistencies
emerge
Efficient
collections
of
receivables
Planning
and
budgeting
for
on time payment
of
debt
to
avoid
late
fee
Efficient balance
of
debt
to
avoid
unnecessary
interest outflows
Aware
of
big picture
->
avoid
unnecessary
spending
Cash management decisions
=
consistent
,
timely
,
transparent
