Which of the Following Statements About Cash Management Is False

question 50

Multiple Choice

Which of the following statements about cash management is false?

• A)Depreciation expense does not appear explicitly on the cash budget, but its tax effects are included.
• B)If cash flows are not uniform during the month, then weekly or perhaps daily cash budgets should be prepared rather than monthly budgets.
• C)Compensating balance requirements do not affect a firm's target cash balance.
• D)Cash management involves costs, and it is important to analyze whether the benefits received outweigh the costs incurred.
• E)The cash budget is the foundation of good cash management.

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Definitions:

Ethnic Groups

Communities or populations sharing a common culture, ancestry, language, or history, which differentiates them from other groups.

Interactive Exchanges

Communications or transactions between two or more parties that involve reciprocal actions and reactions, often in real time.

Sites Of Idleness

Sites Of Idleness refer to places or contexts that are associated with a lack of activity or productivity, often criticized in societal and economic discussions.

Implicit Knowledge

Implicit knowledge is the type of knowledge that is difficult to articulate or transfer to another person by writing it down or verbalizing it, often learned through experience.