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Which of the Following Affects the Precautionary Motive for Holding

question 110

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Which of the following affects the precautionary motive for holding cash?


Definitions:

Total Liabilities

The aggregate of all debts and financial obligations a company owes to external parties.

Contra-Liability Account

An account that reduces the amount of a liability, often used to record discounts or allowances that decrease the total amount owed by a company.

Cash Inflow

The cumulative sum of funds flowing into a company, usually originating from its operations, investments, and financial activities.

Semiannually

Occurring twice a year, typically every six months.

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