. 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
. 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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Question
. 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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