Which of the Following Statements Are Correct Concerning the Cash

question 109

Multiple Choice

Which of the following statements are correct concerning the cash balance of a firm? I.Most firms plan on maintaining a minimum cash balance at all times.
II) The cumulative cash surplus shown on a cash budget is equal to the ending cash balance plus
The minimum cash balance retained by the firm.
III) The cumulative cash surplus at the end of March cannot be used as the beginning cash balance
For April when you are compiling a projected monthly cash balance report.
IV) A negative cumulative cash surplus indicates a borrowing need by the firm.

• A)I and III only.
• B)II and IV only.
• C)I and IV only.
• D)II and III only.
• E)I and II only.

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