Which of the Following Statements Is CORRECT

question 86

Multiple Choice

Which of the following statements is 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 developed separately,and although they are both important to the firm,one does not affect the other.
• C) Since depreciation is a non-cash charge,it neither appears on nor has any effect on the cash budget.
• D) The target cash balance should be set such that it need not be adjusted for seasonal patterns and unanticipated fluctuations in receipts,although it should be changed to reflect long-term changes in the firm's operations.
• E) The typical cash budget reflects interest paid on loans as well as income from the investment of surplus cash.These numbers,as well as other items on the cash budget,are expected values;hence,actual results might vary from the budgeted amounts.

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Definitions:

Expected Frequency

In statistics, the forecasted count of observations in a category based on a probability model or the distribution under investigation.

Expected Frequency

The predicted count of occurrences in each category of a statistical distribution, used as a comparison in chi-square tests.

Type B

A personality typology that describes individuals as more relaxed, non-competitive, and generally less stressed than their Type A counterparts.

Expected Frequency

The theoretical frequency of an event or category based on a probability distribution in statistical analysis.