Which of the Following Statements About a Cash Budget Is

question 12

Multiple Choice

Which of the following statements about a cash budget is true?

• A)It is usually prepared as a part of the overall master budget.
• B)Particular emphasis is paid to cash outflows.
• C)Costs of potential shortfalls in cash are built into the firm's cost structure.
• D)Cash budgets are strictly long-term forecasts.

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Definitions:

Tariffs

Taxes imposed by a government on imported goods.

Comparative Advantage

The capacity of a nation or company to generate a specific product or service with a smaller opportunity cost compared to its rivals.

Quotas

Limits set by governments on the quantity of a product that can be imported or exported within a given time period.

International Trade

The exchange of goods, services, and capital between countries across international borders.