Cash Management Introduction – ACCA Financial Management (FM)
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Hey John,
Hope you are keeping well!
Can you a bit explain the difference between Precautionary motive and speculative motive?
But I do explain the difference and give examples in the lecture.
Thanks John the models for managing cash were well explained and the examples very helpful indeed. The most sensible one is the Miller Orr Model as it helps maintain or fix upper and lower levels of cash balances.
Is it in all cases the lower limit will be given in the exam? If not given how is it calculated? Is it right to say the return point = upper – lower limit?
It will always be given to you.
In this video, I can’t see the lecturer or the workings done on the screen. I can only see the white background.
The other lectures for this chapter are also having the same issue.
Please ask in the Support forum (the link is higher up this page), and admin will help. The lectures are all working fine.
What is the importance of this chapter with regards to the examination point of view? I don’t think they would ask a 20 mark subjective question on either cash budget or baumol formula?
Also, Do they give objective type questions with respect to the theory part of this chapter?
Thanks
Baumol is certainly unlikely (and if it was asked would only be part of a Section C question, not all of it), but it is in the syllabus.
Cash budgets and Miller Orr have both been asked many times.
And yes – the exam does have objective type question in respect of the theory. 50% of the exam is theory as opposed to calculations.
Check the questions in your Revision Kit and you will see this.
the introductory lecture was uploaded twice
Thank you for letting me know – I will have the link corrected.