A firm's target cash balance is the difference between its total cash receipts and its total cash disbursements over a particular time period.

Question

Quizplus · Accepted Answer

A firm's target cash balance is the level of cash that a firm desires to hold for its expected cash needs such as inventory purchases, investments, or operating expenses. It is not the difference between total cash receipts and total cash disbursements.

A Firm's Target Cash Balance Is the Difference Between Its