Which one of the following statements related to a cash budget is correct?

Question

Quizplus · Accepted Answer

A negative quarterly net cash inflow can occur even for financially healthy firms if they have made significant investments or repayment of loans during that period. The cumulative surplus is computed after adjusting for the minimum cash balance, not prior to it. Firms generally set the minimum cash balance above zero for planning purposes to ensure they have a buffer in case of unexpected cash outflows. Capital expenditures are treated as a cash outflow on a cash budget, not a cash inflow. A positive net cash inflow for a period indicates that the cash collections exceed the cash disbursements for that period, not the other way around.

Which One of the Following Statements Related to a Cash