Purposes of Managing Liquidity Include All of the Following, Except

question 59

Multiple Choice

Purposes of managing liquidity include all of the following, except

• A) determining how to keep the majority of your assets in liquid form.
• B) having enough liquid assets to cover cash shortages.
• C) maintaining adequate liquidity to avoid borrowing every time you need money.
• D) maintaining just enough liquid assets to meet your needs.

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Definitions:

Capital Maintenance

An accounting concept aimed at preserving the initial capital of the company, adjusting for inflation or financial performance.

Transactional Methods

Approaches used for evaluating and proceeding with individual transactions, often in the context of tax or foreign exchange.

Periodic Income

This refers to the income received or earned regularly over a specific period, such as monthly or quarterly, typically associated with investments or employment.

Income Reporting

The process of declaring revenue earned by an individual or entity within a certain time frame, often for tax purposes.