Which of the Following Statements Concerning the Cash Budget Is

question 19

Multiple Choice

Which of the following statements concerning the cash budget is CORRECT?

• A) Depreciation expense is not explicitly included,but depreciation's effects are reflected in the estimated tax payments.
• B) Cash budgets do not include financial items such as interest and dividend payments.
• C) Cash budgets do not include cash inflows from long-term sources such as the issuance of bonds.
• D) Changes that affect the DSO do not affect the cash budget.
• E) Capital budgeting decisions have no effect on the cash budget until projects go into operation and start producing revenues.

---

Definitions:

Universal-ethical Principles

The highest stage in Kohlberg's theory of moral development, where actions are guided by internal moral principles that apply to all human beings.

Kohlberg's Theory

A theory of moral development proposed by Lawrence Kohlberg, which suggests that individuals progress through a series of stages of moral reasoning as they mature.

Moral Development

The process through which individuals acquire the standards of right and wrong that guide their thinking and behavior in terms of ethical and social responsibilities.

Highest Stage

In various developmental theories, this term signifies the ultimate phase of development, characterized by the attainment of peak capabilities or understanding.