Question

The company's cash balance at january 1st is $290,000. this company desires a minimum cash balance of $340,000. what is the amount of excess cash or deficiency of cash -g

Answer 1

Answer: The correct answer is a deficiency of $50,000.

Explanation: A cash deficiency occurs when a company or business does not have the cash balance that they desire. In this case, the business has a cash balance of $290,000, but wants a cash balance of $340,000. They have a deficiency of $50,000 between the actual and the desired cash balance.