Cash management
Cash flow statement
Operating cash flow
Cash and cash equivalents
Cash on cash return
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Cash payments have both advantages and disadvantages in transactions. One advantage is that cash provides anonymity, allowing customers to make transactions without leaving a digital trail . Cash is also widely accepted and can be used by anyone, regardless of their access to financial institutions . Additionally, cash helps individuals better allocate their resources and keep track of their spending . However, there are also disadvantages to cash payments. Cash can be easily lost or stolen, leading to financial loss . It also poses a higher risk of payment fraud and identity theft . Furthermore, cash payments hinder transparency and accountability, making it difficult to track and regulate transactions for tax purposes . Overall, while cash payments offer certain advantages, they also come with risks and limitations that need to be considered.
Related Questions
What are the disadvantages of online payment?5 answersOnline payments, despite their convenience, come with certain drawbacks. One significant disadvantage is the complexity and increased system maintenance costs when users switch between payment modes. Additionally, concerns exist regarding the safety, site credibility, and user-friendliness of online banking, which can pose risks to users. Moreover, digital money, including Central Bank Digital Currency (CBDC), may face challenges in emergency situations like power outages or Internet failures, hindering payments. These issues highlight the need for robust offline payment solutions to ensure accessibility and usability, especially for vulnerable groups like children, the elderly, and non-resident travelers. Overall, addressing these disadvantages is crucial for enhancing the reliability and inclusivity of online payment systems.Why cash payment is crucial?4 answersCash payment is crucial for various reasons. Firstly, cash transfers are a common mechanism for income redistribution, especially for vulnerable populations, providing essential support. Secondly, research shows that cash payments for prescriptions, particularly opioids, are associated with higher prescription intensity, highlighting potential issues with uninsured patients and pharmacy shopping. Additionally, a study in Yogyakarta found that factors like transaction volume and no transaction fees influence people to prefer cash payments over non-cash methods. Moreover, brain activity studies suggest that cash payments evoke stronger emotional responses, potentially acting as a self-regulating tool for impulsive spending behaviors. Lastly, cash offers anonymity, financial inclusion, and better resource allocation for individuals, making it important in various settings like shops, restaurants, and financial management.What are the effects of cash payment on the financial stability of start-up businesses?5 answersCash payments have various effects on the financial stability of start-up businesses. Cash represents a natural drive towards economic dynamism and growth, and holding cash resources can provide reassurance and ancestral origins that cannot be eliminated by law. Additionally, cash payments can be costly and inefficient, which can negatively impact the economy and hinder the development of stronger economies. Furthermore, deferred cash compensation programs can mitigate risks and promote a conservative approach to risk-taking, internal monitoring, and the creation of a liquidity buffer, ultimately contributing to financial stability. Therefore, while cash payments may have certain benefits, they can also pose challenges to the financial stability of start-up businesses, highlighting the need for alternative payment methods and risk management strategies.What is the future of cash payment?4 answersThe future of cash payment is undergoing significant changes due to technological advancements and shifting consumer preferences. While cash is still widely used globally, alternative payment platforms such as cryptocurrencies and digital payments are gaining importance. The COVID-19 pandemic has raised concerns about the transmission of the virus through cash, leading to increased promotion of contactless payments and digital currencies. The decline of cash as a payment instrument is further accelerated by the adoption of contactless payment technology and the current pandemic, but there is still expected to be a substantial demand for cash over time. Technology is transforming the payments landscape, with new players developing innovative payment solutions and incumbents redesigning payment systems to improve convenience and safety. The process of replacing cash with electronic payments varies across countries and involves various factors such as technologies, societal values, and business strategies.What are the advantages of cashless transactions?4 answersCashless transactions offer several advantages. Firstly, they provide convenience and ease of use, allowing individuals to make transactions without the need to carry physical cash or wait in long lines for withdrawals. Secondly, cashless transactions promote financial inclusion by providing access to banking services and digital payment options for the unbanked population. Thirdly, cashless transactions can reduce costs associated with conducting business, such as job creation, accounts payable/receivable, and the scope of products and services. Additionally, cashless transactions enable online shopping, offering a wide variety of products, easy price comparisons, and the ability to shop from anywhere and at any time. Finally, cashless transactions have become even more crucial during the COVID-19 pandemic, allowing individuals to make contactless payments and reducing the risk of virus transmission through physical currency.What is the effect of conditinal cash transfer?5 answersConditional cash transfer programs have been found to have positive effects in various areas. In terms of vaccination coverage, a study in Brazil found that beneficiaries of a conditional cash transfer program had higher up-to-date vaccination coverage compared to non-beneficiaries, although there was no difference in timely vaccination. Another study in Malawi showed that cash transfers improved mental health, particularly for individuals with the worst mental health. In terms of labor supply, a randomized controlled trial in Italy found that a conditional cash transfer program increased the likelihood of fathers working, but had no effect on mothers. Additionally, an unconditional cash transfer program in Pakistan was found to improve women's household decision making, independence, and decrease domestic violence, although the effect on women's status in society was minimal. Finally, a study in Nicaragua found that providing access to a conditional cash transfer program increased child nutrition, with a portion of the effect being mediated by child health checkups and household dietary diversity.
