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.

---

Definitions:

Gut Feelings

Intuitive judgments or responses that are not based on rational analysis but on instinct.

Visualize

The practice of forming a mental image of something, used as a technique to enhance comprehension, creativity, or problem-solving.

Imagery

The use of vivid or figurative language to represent objects, actions, or ideas in such a way that it appeals to our physical senses.

Devil's Advocate

A person who expresses a contentious opinion or takes a position they do not necessarily agree with, for the sake of debate or to explore the thought process behind opposing viewpoints.