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.