Which One of the Following Statements Is Correct Concerning the Cash

question 10

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) Most firms attempt to maximize the cash balance at all times.
• D) A cumulative cash deficit on a cash budget indicates the need to acquire additional funds.
• E) The ending cash balance must equal the minimum desired cash balance.

---

Definitions:

Camping Facilities

Venues, including campgrounds and parks, that provide outdoor accommodations and amenities for campers.

Public Choice Theory

A framework for analyzing how public decisions and policies are made, considering individuals as self-interested agents.

Rational Behavior

Decision-making processes that are based on making choices that result in the optimal level of benefit or utility for the individual.

Tennis Racket

A piece of sports equipment consisting of a handled frame with an open hoop across which a network of strings or catgut is stretched, used to hit a tennis ball.