The beginning available cash balance equals the beginning cash balance + the minimum cash balance desired.

Name: The beginning available cash balance equals the beginning cash balance + the minimum cash balance desired.
Brand: Quizplus
Rating: 4.9 (42 reviews)

Question

Quizplus · Accepted Answer

The beginning available cash balance is typically just the beginning cash balance at the start of a period and does not include the addition of the minimum cash balance desired. The minimum cash balance desired is a separate figure that a company aims to maintain for safety purposes.

The Beginning Available Cash Balance Equals the Beginning Cash Balance