The Amount of Cash a Firm Holds to Counter the Uncertainty

question 83

Multiple Choice

The amount of cash a firm holds to counter the uncertainty surrounding its future cash needs is known as a(n) :

• A)speculative balance.
• B)compensating balance.
• C)operating balance.
• D)precautionary balance.
• E)transactions balance.

Learn about the role and mechanism of enzymes in facilitating biochemical reactions.

Recognize the significance of enzyme-substrate complexes and the importance of active sites.

Understand the factors affecting enzyme activity including temperature, substrate concentration, and enzyme inhibitors.

Identify the types of reactions enzymes catalyze and classify enzymes accordingly.

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Definitions:

Noncash Accounts

Accounts that represent transactions not involving physical cash, such as depreciation, amortization, or accruals.

Direct Method

A cash flow statement preparation approach that lists major operating cash receipts and payments, providing a clearer view of cash flow sources and uses.

Total Assets Ratio

A financial ratio comparing the total assets of a company to another financial metric, often used to assess a company's leverage or investment efficiency.

Long-Term Assets

Assets expected to provide economic benefits over a period longer than one year, such as buildings, machinery, and land.