. Which one of the following best represents the transaction motive for holding cash?  A.  Buying extra inventory in response to an unexpected sale offered by a supplier   B.  Distributing the weekly paychecks   C.  Increasing the minimum cash balance for the firm's main bank account   D.  Unexpectedly purchasing a competitor's firm   E.  Holding cash in anticipation that the firm may need to close for a few days if floodwaters keep rising

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter1: Accounting And The Financial Statements
Section: Chapter Questions
Problem 12MCQ: Which of the following sentences regarding the statement of cash flows is false? The statement of...
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. Which one of the following best represents the transaction motive for holding cash? 

A. 

Buying extra inventory in response to an unexpected sale offered by a supplier

 

B. 

Distributing the weekly paychecks

 

C. 

Increasing the minimum cash balance for the firm's main bank account

 

D. 

Unexpectedly purchasing a competitor's firm

 

E. 

Holding cash in anticipation that the firm may need to close for a few days if floodwaters keep rising

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