Which of the Following Statements Is CORRECT

question 128

Multiple Choice

Which of the following statements is CORRECT?

• A) The cash budget and the capital budget are developed separately, and although they are both important to the firm, one does not affect the other.
• B) Since depreciation is a non-cash charge, it neither appears on nor has any effect on the cash budget.
• C) The target cash balance should be set such that it need not be adjusted for seasonal patterns and unanticipated fluctuations in receipts, although it should be changed to reflect long-term changes in the firm's operations.
• D) The typical cash budget reflects interest paid on loans as well as income from the investment of surplus cash.These numbers, as well as other items on the cash budget, are expected values; hence, actual results might vary from the budgeted amounts.
• E) Shorter-term cash budgets, in general, are used primarily for planning purposes, while longer-term budgets are used for actual cash control.

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Definitions:

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brainstem down the back, transmitting neural signals between the brain and the rest of the body.

Interneurons

A type of neuron that serves the role of communication between sensory neurons and motor neurons, mostly located within the central nervous system.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for action by triggering the fight or flight response.

Neurotransmitter

Biochemical substances that facilitate communication between neurons in the nervous system by transmitting signals across synapses.