11-27-2013, 02:50 PM
I've been thinking...
Is there any reason to make a distinction between cash and banked cash? Within the game they're nearly the same. Both forms of funds can be accessed at anytime, but banked has the small advantage of earning an interest. I'm also a little confused by the term 'cash'. Am I meant to think of this as money in the company's vaults? If this is the case, is this realistic?
I could understand if the distinction between cash and banked cash related to liquidity. If the money in the bank were in long term deposits which I couldn't access until they matured, then having a distinction of 'cash' funds would be necessary.
Maybe the distinction should be cash and assets? Cash is always assumed to be in short term bank deposits and assets can include long term deposits (with higher interest rates) and the value of physical properties of the business (distribution centres, factories, etc...) Maybe even tie in owned share values? Not sure.
Anyway, just uncertain why a distinction has been made between 'cash' and 'banked'.
Is there any reason to make a distinction between cash and banked cash? Within the game they're nearly the same. Both forms of funds can be accessed at anytime, but banked has the small advantage of earning an interest. I'm also a little confused by the term 'cash'. Am I meant to think of this as money in the company's vaults? If this is the case, is this realistic?
I could understand if the distinction between cash and banked cash related to liquidity. If the money in the bank were in long term deposits which I couldn't access until they matured, then having a distinction of 'cash' funds would be necessary.
Maybe the distinction should be cash and assets? Cash is always assumed to be in short term bank deposits and assets can include long term deposits (with higher interest rates) and the value of physical properties of the business (distribution centres, factories, etc...) Maybe even tie in owned share values? Not sure.
Anyway, just uncertain why a distinction has been made between 'cash' and 'banked'.