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That covenant may not stipulate exactly what the fiscal solution should be or have any restrictions on it. One example is, a bank loan could need a company keep a certain volume of cash or cash equivalents.
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Exactly what are Cash and Cash Equivalents (CCE)? Cash and cash equivalents are a line item about the balance sheet that stories the worth of a corporation's belongings which might be cash or is often converted into cash straight away.
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Satisfy money covenants. A company could be needed to maintain a certain number of very liquid belongings as Section of a debt covenant.