Which of the following statement is INCORRECT?

Select one:

a. Cash budget is a short-term budget.

b. While preparing a cash budget the focus should be on the amount of cash to be received from cash sources.

c.Cash budget is more helpful in business concerns where there are wide seasonal fluctuations.

d. Sales and purchases amounts are considered as cash flows in the cash budget.

In July, if a firm had a net cash inflow of RM2,000, and a beginning cash balance of RM5,000, but need an ending cash balance of RM30,000, then how much must the firm borrow that month?

Select one:

a.RM23,000

b. RM12,000

c. RM27,000

d. RM11,000

Big Tree generally has a reasonably high demand for cash to pay contract workers during the harvest season. For the rest of the year, Big Tree generally keeps a cash balance of RM10,000. However, during the harvest season, the daily cash balance is kept at a minimum of RM30,000. Which of the following best describes this companys motive for maintaining the additional RM20,000 during the harvest season?

Select one:

a. Profit motive.

b. Transaction motive.

c. Speculative motive.

d. Precautionary motive.