Which One of the Following Statements Related to a Cash

question 23

Multiple Choice

Which one of the following statements related to a cash budget is correct?

• A)Capital expenditures are treated as a cash inflow on a cash budget.
• B)The cumulative surplus is computed prior to adjusting for the minimum cash balance.
• C)A positive net cash inflow for a period indicates the cash disbursements exceed the cash collections for the period.
• D)Financially healthy firms can have a negative quarterly net cash inflow.
• E)Firms generally set the minimum cash balance at zero for planning purposes.

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Definitions:

Windows Operating System

A series of graphical operating systems developed, marketed, and sold by Microsoft.

Version

A specific form or variation of a product that is different from other forms of the same product or from previous iterations.

Variable Costs

Costs that change in proportion with the level of output or business activity, in contrast to fixed costs.

Profit per Unit

The difference between the selling price of a product and its cost per unit.