Question

What is a largest surplus cash amount? How could you find it out?

What is the largest shortage cash amount? How could you figure out it?

Answer 1

Largest surplus cash amount.

surplus often occurs in a budget and also and are less than income.

cash surplus means the cash that exceeds the cash required for day to day operation of company

In easy words cash flow refers to the cash that comes in and flow out of a company.cash flow can be increased in number of ways that means selling more goods or reducing cost or also by selling asset.

if business experiences a surplus of cash flow it has to

make a determination to use cash best way

.

how could you find.

we take the example of bank.

as banker to government central bank manages the government surplus cash which park in account with central bank and if surplus which is can be high as rs10000 cr jumps when the money moves out of the bank system into account.

largest shortage cash amount.

if cash shortage is found u must report in your income statement based on account created to track cash issue.

example of such short cash .

if employee fails to fails to do so you will show less cash than your records indicate you should have.this occurs because the original check is counted in a deposit but the returned check is not subtracted from cash receipts.