A Cash Budget Is Only as Accurate as the ________

question 36

Multiple Choice

A cash budget is only as accurate as the ________ forecast from which it is derived.

• A)profit
• B)receivables
• C)income
• D)sales

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Definitions:

Effective Income Tax Rate

The average rate at which an individual or corporation is taxed, calculated by dividing the total tax expense by the taxable income.

Cash Dividends

Payments made by a corporation to its shareholders as a distribution of profits, typically in the form of cash.

Consolidated Income Tax Return

A single income tax return filed by an affiliated group of corporations, combining their tax liabilities.

Operating Income

Represents the profit a company makes after deducting operating expenses such as wages and cost of goods sold (COGS), but before interest and taxes.