________ Refer to Costs Incurred in a Period That Are

question 192

Short Answer

________ refer to costs incurred in a period that are both unpaid and unrecorded. ________ refer to revenues earned in a period that are both unrecorded and not yet received in cash (or other assets).

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Definitions:

Target Cash Balance

The optimal amount of cash that a company aims to hold to meet expected transactions, precautionary, and speculative needs.

Speculative Motive

The intent to hold cash or other assets for the purpose of benefiting from future market movements.

Precautionary Motive

The desire to hold cash or liquid assets to guard against unforeseen future needs and emergencies.

Transaction Motive

The need for cash to meet immediate and anticipated demands for payment, a key reason for holding cash in business.