A Firm Has a Minimum Desired Cash Balance of $10,000

question 139

Multiple Choice

A firm has a minimum desired cash balance of $10,000.Any cash shortfalls will be made up with short-term financing.The net cash flow for January is $3,000 and the beginning balance for that month is $5,000: The cash balance for the beginning of February will be:

• A)-$2,000
• B)$10,000
• C)$3,000
• D)cannot determine from this information

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Definitions:

Internal Consistency

A measure of reliability of a psychological test or survey, based on the average correlation among items within the test or survey.

Similar Scores

Results or measurements that are almost the same or very close in value among different subjects or items.

Administered

The act of managing, directing, or applying something, often relating to the execution of policies, drugs, or tests.

Test Reliability

The degree to which the results of a test are consistent over time and an accurate reflection of the variable being measured.