Building Blocks Has a Beginning Cash Balance for the Quarter

question 226

Multiple Choice

Building Blocks has a beginning cash balance for the quarter of $800. The firm's president requires a minimum cash balance of $800 be maintained at all times. Further, the president has a policy of
Borrowing when necessary to maintain that balance. If funds have been borrowed, then the
President requires they be repaid as soon as excess funds are available. How much will the firm
Borrow or repay this quarter if the quarterly receipts are $2,565 and the quarterly disbursements
Are $2,607?

• A) Borrow $42.
• B) Borrow $38.
• C) Neither borrow nor repay.
• D) Repay $38.
• E) Repay $42.

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Definitions:

Organizing Process

The method of arranging resources and tasks to achieve an organization's goals efficiently and effectively.

Management Hierarchy

The arrangement of individuals within an organization according to power, status, and job functions, creating a structured chain of command.

Supervisors

Individuals within an organization responsible for overseeing the work of others and ensuring tasks are completed effectively.

Line Organization

Organizational structure that establishes a direct flow of authority from the chief executive to subordinates.