The most reliable method of determining an adequate minimum cash balance is using estimates of similar businesses from trade literature.

Question

Quizplus · Accepted Answer

The most reliable method of determining an adequate minimum cash balance is by analyzing the specific financial needs and cash flow patterns of the business itself, taking into account factors such as seasonality, growth plans, and potential unforeseen expenses. Relying solely on estimates from trade literature may not accurately reflect the unique circumstances of the business.

The Most Reliable Method of Determining an Adequate Minimum Cash