Indicate whether each of the following statements is true or false.The Selling and Administrative Expense (S&A) budget includes depreciation expense, which is based on projections from the capital expenditures budget._____Interest expense on the S&A budget is based on borrowing projections shown in the cash budget._____The schedule of cash payments for selling and administrative expenses includes the amount of depreciation expense for the period._____A pro forma financial statement could be described as a budgeted financial statement._____Pro forma financial statements include amounts drawn from the sales budget, the inventory purchases budget, the S&A budget, and the cash budget._____
What will be an ideal response?
| The Selling and Administrative Expense (S&A) budget includes depreciation expense, which is based on projections from the capital expenditures budget. | T |
| Interest expense on the S&A budget is based on borrowing projections shown in the cash budget. | T |
| The schedule of cash payments for selling and administrative expenses includes the amount of depreciation expense for the period. | F |
| A pro forma financial statement could be described as a budgeted financial statement. | T |
| Pro forma financial statements include amounts drawn from the sales budget, the inventory purchases budget, the S&A budget, and the cash budget. | T |
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Mary bought a bond ?a debt security for $2,500 with a nominal interest rate of 5 percent. If the inflation rate is 4 percent and Mary must pay 30 percent of her income in taxes, her after-tax nominal interest income is _____.
A. ?$87.50 B. ?$22.50 C. ?$37.50 D. ?$48.50
Causal research is very versatile and can be used at any point in a study
Indicate whether the statement is true or false
Which one of the following does not constitute a probable relationship between accounts?
a. Equipment and depreciation. b. Patent and amortization. c. Assets under capital leases and amortization. d. Oil reserves and depreciation.
According to the text, category codes should be ________ and ________
A) dependent; collectively exhaustive B) collectively exhaustive; mutually exclusive C) mutually inclusive; dependent D) dependent; mutually exclusive E) precoded; post-coded