Which of the Following Statements Relating to a Cash Budget

question 14

Multiple Choice

Which of the following statements relating to a cash budget is true?

• A) It is a statement of expected income and expenses.
• B) Non-cash items such as depreciation are included.
• C) It is usually prepared on a weekly basis.
• D) The shorter the time period involved the easier it is to predict future cash flows.

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Definitions:

Discount

A reduction from the usual cost of something, often provided to incentivize purchases or payments.

Merchandise Purchased

Goods acquired for resale by a company during an accounting period, intended to be sold to customers in the ordinary course of business.

Perpetual Inventory System

A perpetual inventory system continuously updates inventory records, including purchases and sales, ensuring real-time tracking of inventory levels.

Discount Period

The time frame between the date of a bill's issuance and its payment due date, during which a payment discount may be available.