Minimum Cash Balance
Barron's Accounting Dictionary:
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Minimum Cash Balance
Safety cushion needed to avoid a possible cash shortage. In cash budgeting, projecting cash inflows (such as collections from customers) and cash disbursements (such as purchases and capital spending) is a difficult task. Even though the company attempts to forecast cash flows as accurately as possible, it is always a good idea to keep a certain minimum cash balance on hand.
| Minimization, Minicomputer, Microprocessor | |
| Minimum Lease Payments, Minimum Pension Liability, Minimum Tax |
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Minimum Cash Balance
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Barron's Accounting Dictionary
Dictionary of Accounting Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
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