Business Studies, asked by miasarin43, 11 months ago

Difference in the motive of holding cash and holding inventory ?

Answers

Answered by arjunnani

Motives for Holding Cash. ... Transaction Motive: The transactionmotive refers to the cash required by a firm to meet the day to day needs of its business operations. In an ordinary course of business, the firm requirescash to make the payments in the form of salaries, wages, interests, dividends, goods purchased, etc.

miasarin43: Its not precise

Answered by Samu731

Meaning:

Cash1}Money i.e. bank notes and coins recognized by the government used in exchange of goods and services is known as Cash.

Inventory2}Any sum of money in the form reserves which is saved for a certain purpose is known as Fund.

Type:

Cash1} Asset

Inventory2}Liability

Consist of:

Cash1}Money Only

Inventory2}Money,Credit and Kind

Scope:

Cash1}Narrow

Inventory2}Wide

Mark as Brainiest..

miasarin43: Yea... But what the exact 2-3 difference in the motive of holding cash and holding inventory by the firm ?

Samu731: what?

miasarin43: U jus gave the difference between cash and inventory.. not on the "Motive of holding cash" and "motive of holding inventory"

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