In a Cash Budget, the Cumulative Cash Balance Is Equal

question 50

Multiple Choice

In a cash budget, the cumulative cash balance is equal to:

• A) net cash flow minus the beginning cash balance.
• B) net cash flow plus the beginning cash balance.
• C) cumulative loan balance minus the ending cash balance.
• D) cumulative loan balance plus the ending cash balance.

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Definitions:

Mutually Exclusive

Decisions or events that cannot occur at the same time, implying that the selection of one precludes the selection of another.

Pay Back

The time period required for an investment to generate cash flow sufficient to recover its initial cost.

Cash Flows

The total amount of money being transferred into and out of a business, especially considered as affecting liquidity.

Shareholder Wealth

The total value of shares held by investors in a company, often used as a measure of company’s financial health and management performance.