Which of the Following Statements Is Correct

question 48

Multiple Choice

Which of the following statements is correct?

• A)Shorter term cash budgets, in general, are used primarily for planning purposes while longer term budgets are used for actual cash control.
• B)The cash budget and the capital budget are planned separately and although they are both important to the firm, they are independent of each other.
• C)Since deprecation is a non-cash charge, it does not appear on nor have an effect on the cash budget.
• D)The target cash balance is set optimally such that it need not be adjusted for seasonal patterns and unanticipated fluctuations in receipts, although it is changed to reflect long-term changes in the firm's
• Operations.
• E)The typical actual cash budget will reflect interest on loans and income from investment of surplus cash. These numbers are expected values and actual results might turn out differently.

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Definitions:

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Refers to the lowest level or point that something has reached in a period of twelve years.

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The act of buying, selling, or exchanging goods and services between parties, often conducted on financial markets for profit.