Which of the Following Statements About Cash Management Is False

question 6

Multiple Choice

Which of the following statements about cash management is false?

• A) Depreciation expense does not appear explicitly on the cash budget, but its tax effects are included.
• B) If cash flows are not uniform during the month, then weekly or perhaps daily cash budgets should be prepared rather than monthly budgets.
• C) Compensating balance requirements do not affect a firm's target cash balance.
• D) Cash management involves costs, and it is important to analyse whether the benefits received outweigh the costs incurred.
• E) The cash budget is the foundation of good cash management.

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Definitions:

Visual Detail

The fine or intricate features perceived through sight, essential for recognizing patterns, objects, and faces.

Stare Directly

To look fixedly or intently at someone or something without interruption or diversion.

Light Intensity

The strength or amount of light per unit area, which affects how brightly a light source appears and how well we can see objects illuminated by it.

Pupil

A part of the eye located in the center of the iris that controls the amount of light entering the eye.