The Following Information Was Taken from Niland Company Cash Budget

question 139

Multiple Choice

The following information was taken from Niland Company cash budget for the month of April $$\begin{array} { l r } \text { Beginning cash balance } & \$ 90,000 \\\text { Cash receipts } & 81,000 \\\text { Cash disbursements } & 102,000\end{array}$$ If the company has a policy of maintaining end of the month cash balance of $75,000, the amount the company would have to borrow is

• A) $87,000.
• B) $21,000.
• C) $6,000.
• D) $0.

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Definitions:

Marginal Social Cost

The overall expense to society of producing one additional unit of a good or service, including both private costs and any externalities.

Coal Mine Pollution

Environmental contamination resulting from the extraction and processing of coal, including air and water pollution.

Catalytic Converters

Devices incorporated in the exhaust system of vehicles that reduce harmful emissions by converting pollutants into less harmful substances.

Internalization of Externalities

Refers to actions taken to incorporate the external costs or benefits of a good or service into the price paid by the consumers or producers.