Welcome to today’s class!!
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In today’s Store Management class, we will be learning about Methods of Keeping Cash Sales Proceed.
Methods of Keeping Cash Sales Proceed.
When goods are sold and cash is received at the same time then this type of sales are called cash sales.
A cash sale is a transaction between a buyer and seller in which the entire amount of money for the purchase is paid immediately in cash or by cheque at the time of sale.
The best practice when conducting a cash sales procedure is to ensure all payments are made in full and the buyer is given a receipt for their purchase. It is also important to properly secure cash payments and store them safely until they can be deposited into the seller’s bank account. Additionally, it is wise to have another person present when conducting a cash sale to observe security precautions.
How Cash Management Works
Cash is among the primary assets that individuals and companies use to pay their obligations and invest. Managing cash is what entities do on a day-to-day basis to take care of the inflows and outflows of their money. Proper cash management can improve an entity’s financial situation and liquidity problems.
For individuals, maintaining cash balances while also earning a return on idle cash is usually a top concern. In business, companies have cash inflows and outflows that must be prudently managed in order to:
- Meet payment obligations
- Plan for future payments
- Maintain adequate business stability
Did you know that some companies may outsource part or all of their cash management responsibilities to different service providers. Regardless, there are several key metrics that are monitored and analyzed by cash management executives on a daily, monthly, quarterly, and annual basis.
A company’s working capital is the result of its current assets minus current liabilities. Working capital balances are important in cash flow management because they show the number of current assets a company has to cover its current liabilities.
Working capital generally includes the following:
- Current Assets: Cash, accounts receivable within one year, inventory
- Current Liabilities: All accounts payable that are due within one year and short-term debt payments that come due within one year
In summary, when conducting a cash sales proceed is to ensure all payments are made in full and the buyer is given a receipt for their purchase.
Explain the meaning of Cash Sales Proceed
What is a working capital?
Define the following:
We hope you enjoyed today’s class. In our next class, we will be talking about Forms of Shareholders.
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