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AURORKA [14]
2 years ago
12

What are the two definitions of cash, and why do corporate treasurers often use the second definition?

Business
1 answer:
dimulka [17.4K]2 years ago
3 0

Answer:

The general term "cash" is used to describe paper money that is exchanged for goods and services. When the term "cash is used by corporate treasurers they are often referring to currency and demand deposits which are considered to be cash equivalents. These cash equivalents include highly liquid marketable securities that can be sold rather quickly at a predictable price which makes them attractive to corporate treasurers.

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