Cash Is Often Referred to as a "Non-Earning" Asset

question 117

True/False

Cash is often referred to as a "non-earning" asset. Thus, one goal of cash management is to minimize the amount of cash necessary to conduct business.

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Definitions:

Noncontrolling Interest

A minority shareholding in a company where the shareholder does not have the majority of voting rights.

Acquisition-Date Fair Value

The value of an asset or liability at the time of acquisition, determined according to applicable accounting standards for fair value measurement.

Controlling Interest

Ownership of a sufficient portion of a company's stock to dictate policies and make management decisions, typically over fifty percent.

Noncontrolling Interest

A portion of the equity in a subsidiary not directly owned by the parent company, reflecting the minority shareholders' interest in the subsidiary.