Which of the Following Statements Regarding Cash Budgets Is Correct

question 51

Multiple Choice

Which of the following statements regarding cash budgets is correct?

• A)Payments for credit purchases should not be included in a cash budget.
• B)Only inflows from cash sales should be included in cash budgets.
• C)Once a firm sets a target cash balance, the amount should remain constant (fixed) as long as the firm continues operations.
• D)Cash budgets should not include cash invested in capital budgeting projects.
• E)Cash budgets should include the firm's tax expenses (liabilities).

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Definitions:

Relevance

The degree to which something is related or useful to the matter at hand, often used to assess information, strategies, or actions.

Douglas Holt

An academic and author known for his work on branding and cultural strategy in marketing.