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wel
3 years ago
5

Which one of the following best represents the transaction motive for holding cash? A. Buying extra inventory in response to an

unexpected sale offered by a supplierB.Distributing the weekly paychecksC. Increasing the minimum cash balance for the firm's main bank accountD. Unexpectedly purchasing a competitor's firmE. Holding cash in anticipation that the firm may need to close for a few days if floodwaters keep rising
Business
1 answer:
Mademuasel [1]3 years ago
4 0

Answer: Distributing the weekly paychecks.

Explanation: In response to the question, a good motive for holding cash is that an employer may want to use the cash to pay his workers their weekly paychecks. A paycheck is the payment given to an employee by the employer after each working duration (could be monthly or weekly)

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a. current asset

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The merchandise inventory are the goods the business sales as their main operation. They are expected to be ready to sale therefore, ready to be converted to cash within the period, therefore will be current assets.

Unless the company do an specific mention and a certain amount of goods that will expected to be sold in a period of time greater than a year, all merchandise inventory will be current. These specific units will be considered non-current as their are expecteed to be converted to cash i na period greater than 1 year.

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In a corporation, decentralized planning means that some planning functions and decision making processes are delegated to lower level managers.

In this case, MultiMarkets' upper management is delegating planning functions to local store managers as a way to respond to an increase in online retailing.

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