The president of Poor Corporation, who likes to have large balances of cash on hand, has recently been reading articles in highly respected financial magazines about very successful businesses. The president noticed that each company stressed the importance of cash management and internal control in making it a success. The president of Poor Corporation comes to you, the accountant, and asks you to explain the concept of cash management.

Required
Explain the concept of cash management, including the two major subdivisions and their components.