Given forecasts of total receipts,total payments and the minimum required balance,the forecast cash surplus is:
A)total payments less total receipts less minimum required balance.
B)total receipts less total payments plus minimum required balance.
C)total receipts less total payments less minimum required balance.
D)total payments less total receipts plus minimum required balance.

Question

Quizplus · Accepted Answer

To calculate the forecast cash surplus, we need to subtract the total payments and minimum required balance from the total receipts. This is because the surplus is the amount left over after all payments and the required minimum balance have been met.

Option A subtracts the minimum required balance twice, which would give an incorrect calculation.

Option B adds the minimum required balance, which is also incorrect.

Option D subtracts the total receipts from the total payments, which would give a negative number, meaning a deficit rather than a surplus.

Therefore, option C is the correct choice.

Given Forecasts of Total Receipts,total Payments and the Minimum Required