Which of the Following Statements Is CORRECT

question 86

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 developed separately,and although they are both important to the firm,one does not affect the other.
• C) Since depreciation is a non-cash charge,it neither appears on nor has any effect on the cash budget.
• D) The target cash balance should be set such that it need not be adjusted for seasonal patterns and unanticipated fluctuations in receipts,although it should be changed to reflect long-term changes in the firm's operations.
• E) The typical cash budget reflects interest paid on loans as well as income from the investment of surplus cash.These numbers,as well as other items on the cash budget,are expected values;hence,actual results might vary from the budgeted amounts.

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Definitions:

Dependent Samples

Pairs or groups of observations in a study that are related or matched in some way.

Normal Curve

Curve resulting from the plot of values with a normal distribution. It is often called a bell curve because of its shape.

Normal Curve

A bell-shaped curve that represents the distribution of scores or variables where most measurements are concentrated around the mean in a symmetric way.

Normal Distribution

Symmetrical distribution of values with the majority of scores “peaking” in the middle.