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:

Quality Service

The provision of services that meet or exceed customer expectations in terms of reliability, assurance, tangibility, empathy, and responsiveness.

Tight Timetables

Schedules or plans with very limited or constrained time for tasks or events.

Down-Sized

The process of reducing the size of a company or organization, usually through layoffs or reduction in workforce.

Synergy

The cooperative interaction among groups, especially when the result is greater than the sum of their individual effects or capabilities.