A Cash Budget Will Have Value Only If It Is

question 63

Multiple Choice

A cash budget will have value only if it is actually used and:

• A)records of actual income and expenses are kept.
• B)spending never deviates from the budgeted amount.
• C)it reflects actual financial position.
• D)it takes into account only credit transactions.
• E)all liabilities are paid.

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Definitions:

Expected Rate of Return

The anticipated profit or loss on an investment, often based on historical data or statistical analysis.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage rate.

Monetary Authorities

Institutions, typically government bodies or central banks, responsible for controlling a country's money supply and implementing monetary policy.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.