Which Statement Related to a Cash Budget Is Correct

question 80

Multiple Choice

Which statement related to a cash budget is correct?

• A)Capital expenditures are treated as a cash inflow on a cash budget.
• B)The cumulative surplus is computed prior to adjusting for the minimum cash balance.
• C)A positive net cash inflow for a period indicates the cash disbursements exceed the cash collections for the period.
• D)Financially healthy firms can have a negative quarterly net cash inflow.
• E)Firms generally set the minimum cash balance at zero for planning purposes.

Comprehend the significance of neurobiological focus in diagnostic classification systems.

Recognize the ethical and practical implications of psychiatric diagnoses and the use of DSM-5 criteria.

Appreciate the diversity of therapeutic approaches and understand the complexities involved in diagnosing and treating psychological disorders.

Understand the effectiveness and assessment of psychological treatments.

---

Definitions:

Margin of Safety

The difference between actual or projected sales and the sales level necessary to break even, as a buffer against uncertainty.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, indicating how much contributes towards covering fixed costs and profit.

Variable Costs

Costs that vary in direct proportion to changes in the level of production or sales.

Fixed Costs

Expenses that remain constant regardless of the level of output or sales, including rent, wages, and insurance costs.