In what way does a cash budget provide management with better information about financing
requirements than a pro forma balance sheet?
A) A pro forma cash budget not only delineates the financing that is needed but it also pinpoints
in greater detail when the financing is needed.
B) A pro forma cash budget gives greater details about the depreciation of fixed assets.
C) A pro forma cash budget utilizes superior methods in determining a firm's income tax
liability for the planned period.
D) A pro forma cash budget does not offer better information to management regarding
financing than a pro forma balance sheet.
A
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Which of the following is not one of the three categories of moral luck?
a. Resultant luck b. Circumstantial luck c. Constitutive luck d. Virtual luck
In the daily newspaper, Webber Motor Company advertised a new convertible at a special reduced price. When Luhr tried to purchase one at the advertised price, Webber's salesperson stated that they had only one of that model and that it had already been sold. Luhr insisted that Webber Motor Company must sell him one at the reduced price, as he was accepting their newspaper offer. Is Luhr correct?
a. Yes; an advertisement in a newspaper is a communicated offer to all customers who wish to accept the offer. b. Yes; all advertisements are general offers that result in binding agreements when accepted by customers. c. No; newspaper advertisements are only invitations to customers to make an offer. d. No; advertisements are offers, but they do not have to be accepted by the advertiser once the product is sold out.
Discuss the strategic purposes of performance management.
What will be an ideal response?
The balance sheet reports
A. liabilities. B. revenue. C. expenses. D. net income.