A projected excess cash balance for a month may be ________.

Question

Quizplus · Accepted Answer

A projected excess cash balance for a month can be invested in marketable securities. This allows the company to earn a return on its cash reserves while still having access to the funds if needed. Financing with short-term or long-term securities would not be necessary in this scenario since the excess cash would already be available. Investing in long-term securities may not be ideal for a short-term excess cash balance as those securities may have longer maturities and be less liquid.

A Projected Excess Cash Balance for a Month May Be