Which of the Following Statements Is Correct Regarding Cash Budgets

question 14

Multiple Choice

Which of the following statements is correct regarding cash budgets?

• A) Cash disbursements for credit purchases are not included in cash budgets.
• B) Only cash inflow from cash sales are included in cash budgets.
• C) The target cash balance set in cash budgets are fixed.
• D) Cash budgets do not include cash flow through investment activities.
• E) Cash budgets include the tax expenses of a firm.