In the cash budget, the cash excess (surplus) or deficiency (deficit) is calculated using which of the following formulas?

Question

Quizplus · Accepted Answer

The cash excess or deficiency is the difference between the beginning cash balance plus receipts, and the disbursements and minimum cash balance required. Option A simply shows the cash inflow and outflow without taking into account the minimum cash balance, while Option B includes loan proceeds which may not always be available. Option D refers to a different concept of total cash needed, which is not relevant to calculating cash surplus or deficit in the cash budget.

In the Cash Budget, the Cash Excess (Surplus) or Deficiency