The amount of cash a firm needs to be able to pay its bills is sometimes referred to as a(n):

Question

Quizplus · Accepted Answer

The amount of cash a firm needs to be able to pay its bills is referred to as a transactions balance. This is the amount of cash required to meet the firm's normal operating expenses, such as payroll, rent, and utilities. The transactions balance is typically maintained in a checking account and is constantly turned over as bills are paid. The other options are not accurate descriptions of this type of cash balance.

The Amount of Cash a Firm Needs to Be Able