Question

Companies segregate ________ from regular cash. This could be used for plant expansion, retirement of long term debt, and compensating balances.

Answer 1

Companies segregate cash reserves from regular cash for specific purposes like plant expansion and retirement of long-term debt.

Step-by-step explanation:

Companies segregate cash reserves from regular cash when making financial decisions. These reserves are set aside and can be used for various purposes such as plant expansion, retirement of long-term debt, and compensating balances. For example, a company may establish a cash reserve to fund future projects or repay outstanding loans.