Your Firm Has a Net Cash Inflow for the Quarter

question 81

Multiple Choice

Your firm has a net cash inflow for the quarter of -$30 (negative) . The beginning cash balance is $15. Company policy is to maintain a minimum cash balance of $5 and borrow only the amount that is necessary to maintain that balance. How much does your firm need to borrow to have a zero cumulative surplus?

• A) $10
• B) $15
• C) $20
• D) $25
• E) $30

---

Definitions:

Cash Control

Methods and procedures that a company uses to monitor, manage, and protect its cash transactions and balances.

Large Companies

Businesses characterized by significant revenue, extensive operational scales, or substantial numbers of employees, often having considerable influence in their respective markets.

Internal Control

A system of policies and procedures implemented by a firm to safeguard its assets, ensure financial reporting accuracy, promote operational efficiency, and encourage adherence to prescribed managerial policies.

Operational Efficiency

The ability of an organization to minimize input and operational costs while maximizing output or productivity.