Principles of asset management

Question 1

What is the appropriate management of cash?

Answer 1

The handing of cash should be separated from the recording of cash
All cash receipts should be banked daily
All payments should be approved by a senior employee and large payments should be approved by two employees
cash budgets should be prepared on a continuing basis

Question 2

What is the Appropriate management of Inventory?

Answer 2

Conduct credit checks before offering a purchase on credit or allowing
monthly statement sent to all debtors
follow up on overdue debtor accounts
The recording of a debtor transaction should be separate from the handling of cash