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 is cash payment?4 answersCash payment refers to the act of making a transaction using physical currency, typically in the form of coins or banknotes. It is a method of payment where the buyer provides the seller with cash as a means of exchange for goods or services. Cash payments are commonly used in various contexts, including e-commerce platforms, where users can select a cash payment mode and complete the transaction offline by submitting a payment code to an offline payment terminal. Cash payments can also be used in the healthcare sector, where uninsured patients often pay for their prescriptions in cash at the pharmacy. Additionally, cash payment terminals are used to facilitate cash transactions, with features such as coin slots, cash registers, industrial personal computers, communication modules, and printers. Overall, cash payment involves the direct exchange of physical currency and is utilized in various sectors for different purposes.What are the advantages and disadvantages of cash payments in transactions?5 answersCash payments have several advantages and disadvantages in transactions. On the positive side, cash is familiar, easy to use, and widely accepted. It provides a quick and efficient way to make payments, especially for small transactions. Cash also allows for anonymity and privacy, as transactions leave no record. However, cash payments also have downsides. Because they do not leave a trace, cash can be used for illicit activities such as money laundering, tax evasion, and terrorist financing. This has led to debates about curbing cash usage and promoting digital payment systems. Additionally, cash imposes a temporary budget constraint and reinforces the pain of paying, which can help prevent unnecessary purchases. Overall, while cash offers convenience and simplicity, its misuse and potential for illegal activities have raised concerns and prompted discussions about its role in modern society.What is cash transfer?5 answersCash transfer refers to a form of payment given by the government or non-government organizations to citizens with the aim of eradicating poverty and solving social problems in society. It is a widely adopted social policy initiative for addressing poverty and vulnerability, particularly in low- and middle-income countries. Cash transfers are direct regular and predictable non-contributory cash payments that help poor and vulnerable households raise and smooth incomes. These transfers can be means-tested or non-means-tested and may include a range of instruments such as social pensions, child grants, or public works programs. The primary purpose of cash transfers is to reduce poverty and vulnerability, but they have also shown potential to contribute to a wider range of development outcomes. Additionally, cash transfers can be used as an initial business capital for recipients, promoting entrepreneurship and elevating family income.Why would individuals prefer to transact in cash and not through banks?4 answersIndividuals may prefer to transact in cash rather than through banks for several reasons. Firstly, cash transactions provide a level of privacy and anonymity that electronic transactions may not offer. This can be particularly appealing to individuals who value their privacy and want to keep their financial transactions discreet. Secondly, some individuals may have a lack of trust in banks, which can lead them to prefer using cash for their transactions. This lack of trust may stem from concerns about the security of electronic transactions or a general distrust of financial institutions. Additionally, cash transactions can be more accessible and inclusive, as they do not require individuals to have a bank account or access to digital payment methods. This can be especially important for marginalized groups who may face barriers to accessing traditional banking services.What are the benefits and drawbacks of using a digital wallet instead of cash?5 answersDigital wallets offer several benefits over cash, including convenience, efficiency, and increased security. They allow for quick and easy transactions, with the ability to complete a transaction in a matter of seconds. Digital wallets also provide a more effective non-cash payment alternative, offering benefits, convenience, and effectiveness in various retail transactions, such as online transportation orders, online food orders, and e-commerce transactions. Additionally, digital wallets have the potential to replace physical banknotes and coins, providing easy access to digital money without the need for a third party. However, there are also drawbacks to using digital wallets. They can increase fraud risk, erode transactional privacy, and expose consumers to non-FDIC-insured accounts. Merchants may also face challenges, such as the loss of valuable customer information and increased costs of accepting payments. Despite these drawbacks, the benefits of digital wallets, including convenience and security, make them a viable alternative to cash.What are the issues in Cashless transaction?5 answersCashless transactions have raised several issues. The transition to cashless stores can disproportionately burden consumers who do not have credit or debit cards, compared to those who do. However, the promotion of digital transactions brings benefits such as transparency, scalability, and accountability. In India, the government has implemented policies to promote cashless transactions, including demonetization and the Pradhan Mantri Jan Dhan Yojana (PMJDY). These policies have had temporary effects on the overall value of cashless transactions, but there has been an increase in the volume of cashless transactions after the adaptation of PMJDY. Overall, the issues in cashless transactions include the burden on consumers without cards, the need for policy alternatives to cash, and the effectiveness of government initiatives.
