Which of the Following Statements Is Most Correct

question 93

Multiple Choice

Which of the following statements is most 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 depreciation 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 vary from budgeted results.

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Definitions:

Discrete Exchange

A transaction that occurs in isolation, where goods, services, or assets are traded between parties without ongoing obligations or relationships.

Occupational Excellence

The achievement of the highest standards of performance within a particular profession or job, often involving continuous improvement and dedication.

Withdrawal Stage

A phase in which an individual begins to disengage from their job or organizational roles, often preceding resignation.

Mentoring

A process in which an experienced individual provides guidance, advice, and support to a less experienced person.