How Is a Cash Budget Different from the Accrual System

question 1

Multiple Choice

How is a cash budget different from the accrual system?

• A) Cash budgets reflect the timing of actual cash inflows and outflows; the accrual system matches expenses to the period when they occur.
• B) Cash budgets are governed by SEC rules; the accrual system is a managerial accounting function.
• C) The accrual system is more accurate than cash budgets.
• D) The cash budget is more accurate; accrual accounting overstates the effect of non-cash expenses.

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Definitions:

Health Care

The organized provision of medical services to individuals or communities for the prevention, treatment, and management of illness and the preservation of mental and physical well-being.

Living Wills

Legal documents that detail a person's wishes regarding medical treatments in situations where they are unable to communicate their decisions.

Intestate

A legal term referring to the condition of dying without a valid will, resulting in one's estate being distributed according to statutory laws.

Escheat

A legal process where unclaimed or abandoned property reverts to the state if no lawful heir is found or claimed.