Which of the Following Is NOT Directly Reflected in the Cash

question 68

Multiple Choice

Which of the following is NOT directly reflected in the cash budget of a firm that is in the zero tax bracket?

• A) Payment lags.
• B) Payment for plant construction.
• C) Cumulative cash.
• D) Repurchases of common stock.
• E) Writing off bad debts.

---

Definitions:

Compound Financial Instrument

A financial instrument that has characteristics that are a combination of a financial asset, financial liability or equity instrument.

Convertible Notes

Debt instruments that can be converted into a specified number of shares of the issuing company at certain times during its life, usually at the discretion of the note holder.

Liability

A present obligation of the entity to transfer an economic resource as a result of past events.

Equity

The value of an owner's interest in a property or business, after subtracting liabilities.