Which of the Following Items Should a Company Report Directly

question 73

Multiple Choice

Which of the following items should a company report directly in its monthly cash budget?

• A) Its monthly depreciation expense.
• B) Cash proceeds from selling one of its divisions.
• C) Accrued interest on zero coupon bonds that it issued.
• D) New shares issued in a stock split.
• E) New shares issued in a stock dividend.

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Definitions:

Financial Assets

Economic resources or investments owned with the expectation that they will provide future income or will increase in value, such as stocks, bonds, or real estate.

Public Works Administration

Part of the New Deal in the 1930s, a large-scale public works construction agency in the United States that built public buildings, projects, and infrastructure to provide jobs and stimulate the economy.

Public Works Projects

Government-funded infrastructure projects intended for public use and benefit, such as roads, bridges, and schools.

Dams and Highways

Large-scale infrastructure projects that include the construction of barriers across rivers to store water and the building of routes for vehicular traffic across land respectively.