Determine whether each policy below is good or bad cash management; then identify the cash management strategy violated or followed for each policy. Rarely used equipment is rented rather than purchased. Cash receipts and cash payments are regularly planned and reviewed. Bills are paid as soon as they are received. Customers are offered discounts to pay early. Excess cash is put into short-term investments to earn extra income.

Cash Management Strategy Good or Bad 1 2. 3. 4. 5