Which of the Following Statements Is CORRECT

question 3

Multiple Choice

Which of the following statements is CORRECT?

• A) If cash inflows from collections occur in equal daily amounts but most payments must be made on the 10th of each month, then a regular monthly cash budget will be misleading.The problem can be corrected by using a daily cash budget.
• B) Sound working capital policy is designed to maximize the time between cash expenditures on materials and the collection of cash on sales.
• C) If a firm wants to generate more cash flow from operations in the next month or two, it could change its credit policy from 2/10 net 30 to net 60.
• D) If a firm sells on terms of net 90, and if its sales are highly seasonal, with 80% of its sales in September, then its DSO as it is typically calculated (with sales per day = Sales for past 12 months/365) would probably be lower in October than in August.
• E) Depreciation is included in the estimate of cash flows (Cash flow = Net income = Depreciation); hence depreciation is set forth on a separate line in the cash budget.

Practice ethical communication in professional reporting, particularly regarding deadlines and reporting problems.

Understand different types of informational reports and their purposes.

Distinguish between various organizational patterns used in informational reports.

Recognize the appropriate contexts for writing specific types of informational reports.

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Definitions:

Sympathetic Nervous

Part of the autonomic nervous system that prepares the body for action, often referred to as the "fight or flight" response system.

Widens Airways

Refers to the process or action that increases the diameter of respiratory airways, improving air flow to and from the lungs.

Peripheral Nervous

Part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord.

Emotion

A complex psychological state that involves an experiential, physiological, and behavioral response to a stimulus.