Examlex
Use the equation presented below to answer the question that follows:
Cash = CL + LTL + CS + RE - NCCA - LTA
Where: CL = Current liabilities
LTL = Long-term liabilities
CS = Common stock
RE = Retained earnings
NCCA = Noncash current assets
LTA = Long-term assets
Which of the following activities results in a cash inflow?
Rising Interest Rates
A situation in which the cost of borrowing money increases, often due to central bank policies.
Speculative Motive
The intent to hold cash for the purpose of taking advantage of future financial opportunities that may arise.
Opportunity Cost
The loss of potential gain from other alternatives when one particular alternative is chosen.
Rate Of Interest
The percentage of an amount of money which is charged for its use per period of time, often expressed annually.
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