Which of the Following Is NOT Directly Reflected in the Cash

question 86

Multiple Choice

Which of the following is NOT directly reflected in the cash budget of a firm that is in the zero tax bracket?

• A) Depreciation.
• B) Cumulative cash.
• C) Repurchases of common stock.
• D) Payment for plant construction.
• E) Payments lags.

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Definitions:

Payor Bank

A bank that is responsible for paying a check or draft presented for payment.

Intermediary Bank

Any bank, other than a payor or depository bank, that transfers a check during the check collection process.

Cashier's Check

A check issued by a bank, drawn on its own funds rather than that of a personal account, which guarantees the payee payment.

Certified Check

A check verified by a bank, guaranteeing that the signer has enough funds to cover the amount of the check.