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Why has the creative use of complex rules expanded in recent years?
Minimum Cash Balance
Minimum cash balance is the lowest amount of cash a company aims to maintain in its accounts to ensure operational liquidity.
Average Collection Period
Measures the time, on average, it takes for a company to receive payments owed by its customers, indicating the efficiency of its credit and collection policies.
Cumulative Surplus
The total accumulated amount of profits, after all expenses and dividends are paid, that a company has at its disposal for reinvestment or distribution.
Minimum Cash Balance
The smallest amount of cash that a company seeks to maintain in its accounts to ensure financial stability and operational efficiency.
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