Question

A. How is float critical to the lifeline management of a company? Explain.

B. What does a treasurer do a day at the office? Explain.

Answer 1

A. Float is critical for the lifeline management of the company because it is used to represent duplicate money which is present in the banking system during the time when the deposit is made in the recipient account and when the money is deducted from the sender's account so it will have to take a high level of financial management in order to manage such money because it will be impacting the overall solvency and liquidity of the company.

float is critical for the business because it will just not affect the day to day liquidity of the business that it will also affect the long-term existence of the business because it can lead the business to the various kinds of duration gap and Liquidity decreases if it is not managed

B. Main functions of the treasurer in day to day office as follows-

I. Treasurer will be accounting for all the money which are received by organisation and all the payments which are made by the organisation.

II. He is also required to report the transactions at regular frequent intervals in order to provide estimation and analysis of use of money and efficiency in use of money by the company.

III. He is also required to perform budgeting related estimations and forecasting regarding various receivables and payables and management of the funds in the company.

Iv. he is also required to provide recommendations regarding use of money to the organisation in a better way.