current assets

How are Current Assets Managed?

Effective current asset management involves several practices:
Cash Management: Ensuring sufficient cash flow to meet short-term obligations while generating returns on idle cash through investments.
Receivables Management: Implementing credit policies and collection strategies to ensure timely payment from customers.
Inventory Management: Balancing inventory levels to meet demand without overstocking, which ties up capital and increases storage costs.
Expense Management: Keeping track of prepaid expenses and ensuring they are utilized efficiently.
Investment Management: Selecting marketable securities that offer a balance between liquidity and return.

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