Various types of short term investment opportunities, Managerial Accounting

Assignment Help:

The subsequent short-term investment opportunities are obtainable to companies in India to invest their temporary cash excess.

a) Treasury Bills: Treasury Bills are short-term government securities; they are sold on a discount to their face value and redeemed at par on maturity. Their default risk is negligible and they are highly liquid instruments.

b) Commercial Papers: Commercial papers are short term, unsecured securities referred through huge companies and highly creditworthy. The maturity of these instruments ranges from fifteen days to one year. Such instruments are marketable thus they are liquid instruments.

c) Certificate of Deposits: Certificate of Deposits is papers referred by banks acknowledging fixed deposits for a particular period of time, they are negotiable instruments and it makes them liquid.

d) Bank Deposits: Firms can deposit excess or surplus cash in a bank for an era of time. The interest rate will base upon the maturity period. This is also a liquid instrument means that, in case of premature withdrawal merely a part of interest earned has to be foregone.

e) Inter-corporate Deposit: Companies consisting of surplus cash can deposit its funds in a sister or relate company or to another company with high credit standing.

f) Money Market Mutual Funds: Money market mutual funds invest in short-term marketable securities. These types of instruments have a minimum lock in period of 30 days and returns are generally two percent above that of bank deposits along with similar maturity.


Related Discussions:- Various types of short term investment opportunities

Activity based costing, Activity Based Costing (ABC) differs from Absorptio...

Activity Based Costing (ABC) differs from Absorption Costing (AC) in the manner in which overheads are charged to units. ABC charges overheads to units based on their proportion

Types of simulation-operational gaining-monte carlo method, Types of Simula...

Types of Simulation 1) Operational Gaining Method: This refers to those situations involving conflict of interest among players or decision makers within the framework o

Working capital management, literature review of effects of working capital...

literature review of effects of working capital on financial performance?

Describe the selling costs and development costs, Describe the Selling cost...

Describe the Selling costs and Development costs Selling costs: These are costs of seeking to create and stimulate demand (sometimes termed as marketing) and securing orde

Negotiated prices-transfer pricing methods, Negotiated prices Where mar...

Negotiated prices Where market based prices are not applicable, it has been argued that allowing managers to bargain with each other in order to establish transfer prices devel

Decision making special order, MNO Ltd produces and sells for $25 an office...

MNO Ltd produces and sells for $25 an office machine for which there is a heavy demand which the company is prevented from meeting because of a shortage of skilled labour. The dire

What is incremental budgeting, Incremental budgeting Incremental budget...

Incremental budgeting Incremental budgeting uses a budget prepared using a last period budget or actual performance as a base with incremental amount asses for the new budget p

What is product life cycle, Product life cycle Every product has a life...

Product life cycle Every product has a life cycle. The life cycle of a product vary from months to various years. For example in the case of cameras photocopying machines etc.

The roles of management accounting within a company., Review the roles of m...

Review the roles of management accounting within a company. 1.What is the most important role of management accounting? 2.How is that different than financial accounting? 3.What is

C-v-p analysis under uncertainty, C-V-P ANALYSIS UNDER UNCERTAINTY A ma...

C-V-P ANALYSIS UNDER UNCERTAINTY A major limitation of the basic C.V.P analysis is the assumption that the unit variable cost, selling price and the fixed costs are constant an

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd