Mark Wants to Make Sure He Does Not Run Out

question 43

Multiple Choice

Mark wants to make sure he does not run out of cash so he is preparing a monthly cash budget. After determining the percentage of cash collections by month, he should

• A) estimate the amount and timing of cash disbursements.
• B) calculate cash flow from operations.
• C) determine the end-of-month cash balance.
• D) determine the beginning-of-the-month cash balance.

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Definitions:

Judgment

The official decision or conclusion given by a court following a legal proceeding.

Real Defense

A genuine, legally recognized defense that can be used to nullify a claim or charge.

Holder in Due Course

A person or entity that holds a negotiable instrument in good faith, for value, and without notice of any defects, obtaining certain rights exceeding those of the original parties.

15 Years Old

Refers to an individual or object that has reached or exists for a duration of fifteen years.