1. The most common cash disbursement are (a) dividend income, cash sales, and accounts payable. (b) cash purchases, dividends, and interest income. (c) cash purchases, dividends, and accounts payable. (d) cash sales, rent, and accounts payable.

2. Cash disbursements may include all of the following EXCEPT (a) tax payments. (b) rent payments. (c) depreciation expense. (d) fixed asset outlays.

3. One way a firm can reduce the amount of cash it needs in any one month is to (a) slow down the payment of receivables. (b) delay the payment of wages. (c) accrue taxes. (d) speed up payment of accounts payable.

4. A projected excess cash balance for the month may be (a) financed with short-term securities. (b) financed with long-term securities. (c) invested in marketable securities. (d) invested in long-term securities.

5. If a firm expects short-term cash surpluses it can plan (a) long-term investments. (b) short-term borrowing. (c) short-term lending. (d) leverage decisions.

6. A firm has actual sales in November of $1,000 and projected sales in December and January of $3,000 and $4,000, respectively. The firm makes 10 percent of its sales for cash, collects 40 percent of its sales one month following the sale, and collects the balance two months following the sale. The firms total cash receipts in November (a) are $1,000. (b) are $100. (c) are $700. (d) cannot be determined with the information provided.

7. A firm has actual sales in November of $1,000 and projected sales in December and January of $3,000 and $4,000, respectively. The firm makes 10 percent of its sales for cash, collects 40 percent of its sales one month following the sale, and collects the balance two months following the sale. The firms total expected cash receipts in January (a) are $700. (b) are $2,100. (c) are $1,900. (d) cannot be determined with the information provided.

8. In April, a firm had an ending cash balance of $35,000. In May, the firm had total cash receipts of $40,000 and total cash disbursements of $50,000. The minimum cash balance required by the firm is $25,000. At the end of May, the firm had (a) an excess cash balance of $25,000. (b) an excess cash balance of $0. (c) required financing of $10,000. (d) required financing of $25,000.

9. In October, a firm had an ending cash balance of $35,000. In November, the firm had a net cash flow of $40,000. The minimum cash balance required by the firm is $25,000. At the end of November, the firm had (a) an excess cash balance of $50,000. (b) an excess cash balance of $75,000. (c) required total financing of $15,000. (d) required total financing of $5,000.

10. In the month of August, a firm had total cash receipts of $10,000, total cash disbursements of $8,000, depreciation expense of $1,000, a minimum cash balance of $3,000, and a beginning cash balance of $500. The ending cash balance for August totals (a) $1,500. (b) $5,500. (c) $2,500. (d) $3,500.