If Projected Net Cash Flow for January Is ($6,500); Beginning

question 38

Multiple Choice

If projected net cash flow for January is ($6,500) ; beginning cash balance is $16,000; minimum cash balance is $5,000; beginning loan balance is $4,500, what will be the cash balance on the proforma cash budget at the end of January?

• A) $5,000
• B) $10,000
• C) $12,000
• D) $4,500

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Definitions:

Adjusting Journal Entry

A journal record used to adjust the balances in various ledger accounts to more accurately reflect income and expenses for the period.

Supplies Account

An account that tracks the cost of supplies not yet used by a business.

Adjusting Entry

An accounting entry made into a ledger after the end of the accounting period to allocate income and expenditure to the period in which they actually occurred.

Prepaid Rent

An expense that is paid in advance and recorded as an asset on the balance sheet until it is realized as an expense over time.