The Following Information Was Taken from Niland Company Cash Budget

question 48

Multiple Choice

The following information was taken from Niland Company cash budget for the month of April $\begin{array}{lr}\text { Beginning cash balance } & \$ 120,000 \\\text { Cash receipts } & 108,000 \\\text { Cash disbursements } & 136,000\end{array}$ If the company has a policy of maintaining an end of the month cash balance of $100,000, the amount the company would have to borrow is

• A)$116,000.
• B)$28,000.
• C)$8,000.
• D)$0.

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Definitions:

Commerce Clause

A provision in the United States Constitution that grants Congress the power to regulate commerce with foreign nations, among the several states, and with the Indian tribes.

Labor Relations

The study and practice of managing unionized employment situations, including negotiations between employers and labor unions.

Interstate Commerce

refers to any business or trade activities that cross state lines or affect more than one state in the United States, subject to federal regulation.

Federal Funds

Refers to the reserve balances that banks and other financial institutions maintain at Federal Reserve Banks, often lent and borrowed overnight between banks to meet reserve requirements.