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:

Punctuated Equilibrium

A theory in evolutionary biology that proposes that species evolve rapidly during short periods of drastic change, followed by long periods of stasis.

Midpoint Transition

A concept in project or task management indicating a significant phase of transition or shift in focus, often halfway through the process.

Group Development

The phases through which a group progresses, from formation to maturity, affecting its structure and function.

Conflict

A serious disagreement or argument, typically a prolonged one, that can occur between individuals, groups, or nations.