3 Questions
Which of the following best defines the transaction motive?
The need for cash to cover day-to-day business expenses like salaries, rent, and purchases
What are some examples of cash outflows related to the transaction motive?
Payment of salary, rent, labor payment, and purchase of goods
What are some examples of cash inflows related to the transaction motive?
Cash received from sale of goods and debtors
Test your knowledge on the transaction motive in business operations and cash management. Explore the reasons why businesses require cash for day-to-day operations and learn about the inflow and outflow of cash in a firm.
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