A Use of Cash Can Be Determined By

question 120

Multiple Choice

A use of cash can be determined by:

• A) a decrease in a liability.
• B) an increase in an asset.
• C) an increase in retained earnings.
• D) Both an increase in an asset and an increase in retained earnings.
• E) Both a decrease in a liability and an increase in an asset.

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Definitions:

Previous Year's Budget

The financial plan containing income and expenditure for the prior year, used as a reference or benchmark for current financial planning.

Forecasting

The process of predicting future events, trends, and behaviors based on historical data and analysis.

Objective Setting

The process of establishing specific, measurable, attainable, relevant, and time-bound (SMART) goals for an organization or individual.

Planning

The process of outlining organizational goals, strategies, and actions necessary to achieve those goals.