Question

By adding lines to show any borrowing or repayment necessary to achieve a minimum desired cash amount, what is the term used for the preliminary ending cash balance?

1) Minimum cash balance
2) Desired cash balance
3) Preliminary cash balance
4) Ending cash balance

Answer 1

3) Preliminary cash balance. The term used for the preliminary ending cash balance by adding lines to show any borrowing or repayment necessary to achieve a minimum desired cash amount is preliminary cash balance.

Step-by-step explanation:

The term used for the preliminary ending cash balance by adding lines to show any borrowing or repayment necessary to achieve a minimum desired cash amount is 3) Preliminary cash balance. The preliminary cash balance represents the initial projection of the ending cash balance before any adjustments are made for borrowing or repayment. This balance is based on the assumption that no borrowing or repayment is needed to achieve the minimum desired cash amount.