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:

Policies And Procedures

Established guidelines and systematic steps created by an organization to govern actions and decision-making, ensuring consistency and compliance with standards.

Rituals

Established patterns of behavior or ceremonies that are performed by an organization or its members, often symbolic in nature.

Observable Culture

Aspects of an organization's culture that can be seen or felt, such as rituals, ceremonies, dress codes, and physical layout, offering insights into the organization's values.

Marketing Director

A professional responsible for overseeing and guiding a company's marketing strategy, campaigns, and team.