Ask Experts Questions for FREE Help !
    KadeeTalbot's Avatar
    KadeeTalbot Posts: 1, Reputation: 1
    New Member

    Jan 22, 2009, 10:29 PM
    Cash, Receivables, and Inventory
    Which of the following is the most important for an organization to manage: cash, receivables, or inventory? Why? Is one more susceptible to fraud and errors than the others? Explain your answer. How would a misstatement in each affect the organization
    frostedflake's Avatar
    frostedflake Posts: 4, Reputation: 1
    New Member

    Feb 19, 2009, 05:43 PM

    Most Important is Inventory. Second is Accts. Rec. The result is Cash. You need the cash to buy more stuff to sell on account to customers that will be good for it when you need cash to buy more stuff...
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member

    Feb 19, 2009, 07:05 PM

    The most important is Cash because it is the most liquid of assets. Also cash is the most susceptible to Fraud and errors than the other items.

Not your question? Ask your question View similar questions


Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.

Check out some similar questions!

Cash Receipts and Accounts Receivables [ 1 Answers ]

-------------------------------------------------------------------------------- Ellis Sport Shop projects the following sales: Ninety percent of Ellis' sales are on credit with 60 percent of receivables collected in the month after the sale and the rest of receivables collected in the...

Cash and Receivables [ 1 Answers ]

Gershwin Wallcovering Inc. shipped the wrong shade of paint to a customer. The customer agreed to keep the paint upon being offered a 15% price reduction. Gershwin would record this reduction by crediting accounts receivable and debiting: a)sales b) sales discount c)sales return d) sales...

Finance- Cash and Inventory Management [ 1 Answers ]

If the lock box saves 2 days in collection float, is it worthwhile to adopt the system?

View more questions Search