Forgone amount for holding balances of cash at time they are received is classified as

Solution (By Examveda Team)

Forgone amount for holding balances of cash at time they are received is classified as opportunity cost. Opportunity costs represent the benefits an individual, investor or business misses out on when choosing one alternative over another. While financial reports do not show opportunity cost, business owners can use it to make educated decisions when they have multiple options before them.