The Cash Balances of Most Firms Consist of Transactions, Compensating

question 26

True/False

The cash balances of most firms consist of transactions, compensating, precautionary, and speculative balances.We can produce a total desired cash balance by calculating the amount needed for each purpose and then summing them together.

---

Definitions:

Ethical

Pertains to moral principles that govern a person's behavior or the conducting of an activity.

Administration

This term generally pertains to the management, organization, and supervision of the affairs and operations of institutions or businesses.

Child Abuse

Any action by another person – adult or child – that causes significant harm to a child.