Which of the Following Statements Concerning the Cash Budget Is

question 68

Multiple Choice

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

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

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Definitions:

Planned Strategy

A predetermined approach designed to achieve long-term or overall aims and objectives.

Organization

A structured group of people working together towards common goals, often characterized by a formal hierarchy and standard procedures.

Divisionalized Form

A type of organizational structure that groups divisions within the organization based on products, services, or geographical markets.

Loosely Coupled

A system design principle where components are minimally dependent on each other, allowing for flexibility and easier modification.