Unused Cash

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  • 7/23/2019 Unused Cash

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    Unused cash : is the unused amount of money that capitalize in the corporation that

    probably. Thats the surplus of the excessive amount of reserves of company.

    Therefore, theres no ow out of it.

    Goal of tax : better to share it in the hand of employee or the shareholder to

    stimulate the maret and to stimulate the economy.

    !ebalance the export"reliant economy towards domestic consumption.

    #walnya : unused cash is used as the insurance a$ainst economic shoc.

    %ompany tend to hoardin$ the cash and buyin$ ris"free securitises that can be

    instatanly converted to cash, which are nown in accountin$ parlance as li&uid

    assets.

    'alo once di naian $a(i, dilempar uan$nya, susah di cut la$i alo ada economiccrisis.

    This risin$ sea of li&uid assets holds bac economic recovery in at least two ways :

    ). The economic en$ine sputters when pro*ts are not recycled throu$h the

    economy + when they are not invested in new plant and e&uipment, not

    spent on research and development, not paid out as hi$her wa$er or lar$er

    dividends to the shareholder. The ow of funds between buyers and sellers,

    employers and worers, companies and their investors is the fuel re&uired to

    rev up the economy and to create a vibrant economy.