The cumulative cash surplus shown on a cash budget is equal to the ending cash balance plus the minimum cash balance retained by the firm.

Question

Quizplus · Accepted Answer

The cumulative cash surplus shown on a cash budget is equal to the ending cash balance, not the ending cash balance plus the minimum cash balance retained by the firm. The minimum cash balance is a target or a buffer the firm aims to maintain, not a figure that is added to the ending cash balance to determine the cash surplus.

The Cumulative Cash Surplus Shown on a Cash Budget Is