In a Summary Cash Budget, the Total Cash Available Is

question 62

Multiple Choice

In a summary cash budget, the total cash available is calculated by:

• A) adding the cash receipts and deducting the cash disbursements from the beginning cash balance.
• B) adding the cash receipts to the beginning cash balance.
• C) adding the cash receipts and borrowings to the beginning cash balance.
• D) adding the cash balance before borrowing to interest on line of credit.

---

Definitions:

Voting Common Stock

Shares that give the holder the right to vote on corporate policy and make decisions affecting the company's governance.

Net Income

The ultimate financial benefit a company receives after revenue has been adjusted for expenses and taxes.

Bond Investment

Purchasing of bonds as a way to generate income through interest payments, with potential for capital gains.

Book Value

The value of an asset as it appears on a balance sheet, calculated by subtracting any depreciation or amortization from the asset's original cost.