Free ACCA FFM Managing Cash Balances and Treasury Study Guid...

Overview

This module covers treasury management and cash balance optimization, including treasury objectives, cash deficit management, and surplus investment strategies. Topics include bank relationships, overdrafts short-term loans, and investment vehicles.

1. Treasury function and banking

• Objectives and responsibilities of treasury
• Bank relationships and payment systems overview
• Cash handling controls and fraud prevention

2. Managing cash deficits

• Overdrafts, short-term loans, and lines of credit
• Cost considerations and facility selection
• Cash flow timing, buffers, and covenant awareness

3. Managing cash surpluses

• Short-term investment vehicles and criteria
• Liquidity, yield, and risk trade-offs
• Cash pooling and sweeping basics