Your Firm Has a Net Cash Inflow for the Quarter

question 335

Multiple Choice

Your firm has a net cash inflow for the quarter of - $26 (negative) . The beginning cash balance is
$12.Company policy is to maintain a minimum cash balance of $10 and borrow only the amount that is necessary to maintain that balance. How much does your firm need to borrow to have a zero
Cumulative surplus?

• A) $0
• B) $4
• C) $10
• D) $18
• E) $24

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Definitions:

National Charters

Official permissions granted by a government allowing the creation or operation of national banks and defining their powers.

Banking

The business conducted or services offered by a bank, such as lending, receiving deposits, and managing financial transactions.

Traveler's Checks

Traveler's Checks are preprinted, fixed-amount checks designed to allow the person signing them to make payments or exchange them for cash while traveling, offering a secure alternative to carrying cash.

Checking Account

A bank account that allows the account holder to make deposits, withdraw cash, and write checks for daily transactions.