Which of the following statements concerning the cash budget is CORRECT?
A. Cash budgets do not include financial items such as interest and dividend payments.
B. Cash budgets do not include cash inflows from long-term sources such as the issuance of bonds.
C. Changes that affect the DSO do not affect the cash budget.
D. Capital budgeting decisions have no effect on the cash budget until projects go into operation and start producing revenues.
E. Depreciation expense is not explicitly included, but depreciation's effects are reflected in the estimated tax payments.
Answer: E
You might also like to view...
Decision makers demand reliable information that is provided by accountants.
Answer the following statement true (T) or false (F)
Some research has suggested that interest in transformational leadership may be exaggerated and perhaps not as relevant now that ______ are flooding into the workplace.
A. managers B. intellectuals C. followers D. millennials
The seller is responsible for paying shipping charges and bears the risk of damage or loss in transit if goods are shipped FOB destination.
Answer the following statement true (T) or false (F)
A manufacturer and marketer of prescription pharmaceuticals decided to raise the price of its anti-malaria drug from $15.00 per dose to $750.00 per dose, a price increase of 5,000 percent. Following a public outcry, the CEO was forced to resign, the company was forced to retract the price hike, and the company's stock price sharply declined. Which of the following has the company incurred?
A. visible but not intangible costs B. internal administrative costs but not intangible costs C. only visible and internal administrative costs D. visible and intangible costs E. internal administrative costs but not visible costs