As for the Preparation of Cash Budgets,capital Expenditures Are

question 13

Multiple Choice

As for the preparation of cash budgets,capital expenditures are:

• A) not included because these items are depreciated.
• B) included as sources of operating cash.
• C) included as uses of cash and make the budget lumpy.
• D) traditionally offset as a use of cash by interest income.

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Definitions:

Financial Asset

Any asset that is cash, an equity instrument of another entity, or a contractual right to receive cash or another financial asset.

Risk-free Asset

An investment with zero default risk, often assumed to be government bonds, providing a guaranteed return.

Average Returns

The mean financial return of an investment over a specified period.