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The Cash Advances: A Decapitalising Or An Enrichment Of The Entity?

Author

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  • DEACONU SORIN-CONSTANTIN

    (UNIVERSITY 1 DECEMBRIE 1918 ALBA IULIA)

Abstract

The cash on hand is an extremely important indicator for all the economic entities, either private or public. The international standards of financial report refer to this indicator using the notion of cash flow or cash equivalent. In practice, the managers, the administrators and the associates of the companies are permanently interested by the value of the available cash, especially in the bank accounts. Still, the cash on hand also contains other elements than the cash in the bank accounts, such as: petty cash, cash advances, etc. These elements present in practice a series of risks because an incorrect management can have negative consequences on the activity of the entity and lead, eventually, to insolvency.

Suggested Citation

  • Deaconu Sorin-Constantin, 2019. "The Cash Advances: A Decapitalising Or An Enrichment Of The Entity?," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 100-105, October.
    • Handle: RePEc:cbu:jrnlec:y:2019:v:5:p:100-105
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