In a cash budget, if the cash available before financing falls below the budgeted balance:
A: the company should reduce its cash receipts.
B: the company can invest the excess cash.
C: the company will need additional financing.
D: the company is facing bankruptcy.
A: the company should reduce its cash receipts.
B: the company can invest the excess cash.
C: the company will need additional financing.
D: the company is facing bankruptcy.
举一反三
- During the month of February, Hoffer Company had cash receipts of $7,500 and cash disbursements of $8,600. The February 28 cash balance was $1,800. What was the January 31 cash balance? () A: $700. B: $1,100. C: $2,900. D: $0.
- A company receives £500 of cash as an additional investment in the company by its owner, Mary Smith. The company's Cash account is increased and Mary Smith, Capital is increased. Should the £500 entry to the Cash account and to Mary Smith, Capital be a debit or a credit, respectively? A: a debit; a debit B: a debit; a credit C: a credit; a debit D: a credit; a credit
- A company plans to decrease a $200 petty cash fund to $75. The current balance in the account includes $45 petty cash payment in receipts and $165 in currency. The entry to reduce the fund will include a: A: Debit to Cash Short and Over for $10. B: Debit to Cash for $90. C: Debit to Miscellaneous Expenses for $35. D: Credit to Petty Cash for $165. E: Credit to Cash for $90.
- The Singletary Corporation had a beginning cash balance of $7,050 during the month of March. This company is expected to collect $4,500 from its outstanding accounts receivable. The projected cash sales for March are $9,000. The outstanding accounts payable balance is $10,000, of which 30% is to be paid during March. Operating expenses that are to be paid during March are projected to be $12,000. If preparing a cash budget for the month of March, what is the ending cash balance?
- Which of the following statement is true? A: All the assets of a business are belong to the owner(s) of the company. B: Equity financing means cash investment to the business by the owner(s) . C: A company also can be financed through internally generated cash. D: None of the above