AICPA CPA-Business Exam - Topic 3 Question 31 Discussion

Actual exam question for AICPA's CPA-Business exam

Question #: 31
Topic #: 3

[All CPA-Business Questions]

All of the following are valid reasons for a business to hold cash and marketable securities, except to:

ASatisfy compensating balance requirements.

BMaintain adequate cash needed for transactions.

CMaintain a precautionary balance.

DEarn maximum returns on investment assets.

Show Suggested Answer

Suggested Answer: D

Choice 'd' is correct. There are three primary motives for holding cash:

1. Transactions demand

2. Precautionary demand

3. Speculative demand

However, cash is generally held in very short-term liquid investments which are low risk, low return.

by Cecilia at May 05, 2022, 08:48 PM

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5 months ago

Okay, let me think this through. I'm leaning towards option C to open the URL builder in the admin panel. That seems like the most logical way to update the URL.

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Okay, let's think this through step-by-step. The key here is to determine the level of compliance based on TOGAF 9 guidelines. Even though the RPC mechanism doesn't match the spec, the rest of the system seems to be working correctly. I'm leaning towards option B, describing it as consistent.

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Tracey

5 months ago

I mixed these up in practice questions before! But I think since they all get the treasure if they all submit, it might be interdependent?

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AICPA CPA-Business Exam - Topic 3 Question 31 Discussion

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