Which of the following statements is CORRECT?
A. Shorter-term cash budgets, in general, are used primarily for planning purposes, while longer-term budgets are used for actual cash control.
B. The cash budget and the capital budget are developed separately, and although they are both important to the firm, one does not affect the other.
C. Since depreciation is a non-cash charge, it neither appears on nor has any effect on the cash budget.
D. The target cash balance should be set such that it need not be adjusted for seasonal patterns and unanticipated fluctuations in receipts, although it should be changed to reflect long-term changes in the firm's operations.
E. The typical cash budget reflects interest paid on loans as well as income from the investment of surplus cash. These numbers, as well as other items on the cash budget, are expected values; hence, actual results might vary from the budgeted amounts.
Answer: E
You might also like to view...
Expenses can be matched against revenue
a. if the earnings process is not complete. b. when cash is collected from the sale of products. c. through allocation to the accounting periods in which the benefits are recognized. d. when payment is made for costs related to revenue.
A deficiency in design of internal controls exists when an existing control is not properly designed so that, even if the control operates as designed, the control objective would not be met
a. True b. False Indicate whether the statement is true or false
________ is the actual sales realized for the merchandise minus its costs of the merchandise sold.
A. Fixed price B. Maintained markup C. Initial markup D. Total profit E. Net profit margin
The text discusses the evolution of marketing through five "eras." Which of the following is NOT one of these eras?
A. the production era B. the marketing company era C. the simple trade era D. the sales era E. the diversification era