Which One of the Following Statements Is Correct Concerning the Cash

question 32

Multiple Choice

Which one of the following statements is correct concerning the cash balance of a firm?

• 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:

Average Variable Cost

The total variable cost of production divided by the quantity of output produced, reflecting the average cost of each unit of output on variable factors.

Exclusive Right

A legal entitlement granting someone the sole authority to engage in a certain activity or use a specific property.

Profit

The financial gain obtained when the total revenues generated from selling goods or services exceed the total costs and expenses to produce them.

Exclusive Right

Exclusive Right is a legal entitlement that grants the holder the sole privilege to perform, use, or sell a particular service, product, or piece of intellectual property.