Which One of the Following Statements Is Correct Concerning a Company's

question 50

Multiple Choice

Which one of the following statements is correct concerning a company's cash balance?

• A) Most firms attempt to maintain a zero cash balance at all times.
• B) The cumulative cash surplus shown on a cash budget is equal to the ending cash balance plus the minimum desired cash balance.
• C) On a cash balance report, the cumulative cash surplus at the end of May is used as June's beginning cash balance.
• D) A cumulative cash deficit indicates a borrowing need.
• E) The ending cash balance must equal the minimum desired cash balance.

---

Definitions:

Statutory Authority

Statutory authority refers to powers and functions granted to a government agency or body through a formal law or statute passed by a legislative body.

Litigation

The process of taking legal action in court to enforce or defend a right or claim.

First Amendment

A part of the United States Constitution which protects freedoms concerning religion, expression, assembly, and the right to petition.

FTC Commissioners

Officials appointed to the Federal Trade Commission (FTC), a U.S. federal agency, responsible for enforcing antitrust and consumer protection laws.