1.What is the transactional motive of holding cash? a. To keep a cash reserve for purchasing goods and services to balance out the cash inflows and outflows. b. To keep the cash for all the transactions made during a periodic term. c. To keep the cash for transactions mandatory for day to day activities. d. To keep the transactions for foreign trading.
a. To keep a cash reserve for purchasing goods and services to balance out
the
b. To keep the cash for all the transactions made during a periodic term.
c. To keep the cash for transactions mandatory for day to day activities.
d. To keep the transactions for foreign trading.
2. Below are all components of
a. Cash
c. Marketable Securities
b. Inventories
d. Notes Payable
3. In what order will a company’s current assets appear on a classified balance
sheet?
a. Alphabetical order
c. From largest to smallest amount
b. Company’s choice
d. Order of Liquidity
4. Which of the following would not be important in examining the firm's buildup of
a. A brief
b. Cash receipts and cash payments schedules
c. Income Statement
d. Sales
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