What Cover liquidation of their actual obligations?a.Non-cash Availment Authorityb.Cash Disbursement Ceilingc.Notice of Cash Allocationd.Notice of Transfer of Allocation
Question
What Cover liquidation of their actual obligations?a.Non-cash Availment Authorityb.Cash Disbursement Ceilingc.Notice of Cash Allocationd.Notice of Transfer of Allocation
Solution
The Cash Disbursement Ceiling (b) covers the liquidation of actual obligations. This is a financial control mechanism that sets the maximum amount of cash that can be disbursed within a specific period. It ensures that the entity does not spend more than it has available, thus preventing insolvency and promoting financial stability.
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