Which One of These Statements Is True

Multiple Choice

Which one of these statements is true?

A) The cumulative finance surplus requirement is computed prior to adjusting for the minimum cash balance.
B) A financially sound firm will always have a positive quarterly net cash flow.
C) A negative cumulative cash surplus indicates a borrowing need.
D) Most firms plan on maintaining a zero cash balance.
E) The minimum cash balance generally increases on a quarterly basis.