1. Some approaches for determining the target minimum cash balance include:

one to three months of cash expenses

worst case scenario analysis

residual cash retention.

A and B

A, B, and C

2. Methods to maintain the target minimum cash balance include the following except

increase startup funds

Use short-term loans

Use revolving line of credit

Use cash advance from credit companies

All of the above

3. The most important and difficult task of estimating cash flows for an established business is

computing historic ratios

computing historic rolling averages

identifying values that will change during the forecast period

A and B

A, B, and C

4. Cash budget is usually prepared for

6 month

one to three years

three to five years

five to ten years

ten to twenty years

5. Cash flow forecasting and cash budget development are

iterative processes.

non-routine processes for new businesses only.

easy because entrepreneurs want to keep the estimates simple..

A and B

A, B, and C