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.

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Definitions:

Conditional Probability

The likelihood that one event happens assuming a different event has already taken place.

Occurrence

The fact of something happening or the instance of something taking place.

Event

An occurrence or happening, particularly one of significance, often considered for its effects or outcomes in various contexts.

Exclusive

Pertaining to a unique right or privilege held by an entity, preventing others from sharing the same.