The fi rm can use a variety of procedures to manage the collection and disbursement of cash
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The fi rm can use a variety of procedures to manage the collection and disbursement of cash to speed up the collection of cash and slow down payments. Some methods to speed collection are lockboxes, concentration banking, and wire transfers. The fi nancial manager must always work with collected company cash balances and not with the company’s book balance. To do otherwise is to use the bank’s cash without the bank knowing it, raising ethical and legal questions.
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