Which of the Following Statements Is Correct

question 10

Multiple Choice

Which of the following statements is correct?

• A) Depreciation is included in the estimate of cash flows (Cash flow = Net income + Depreciations), so depreciation is set forth on a separate line in the cash budget.
• B) If cash inflows and cash outflows occur on a regular basis, such as the situation where inflows from collections occur in equal amounts each day and most payments are made regularly on the 10^th of each month, then it is not necessary to use a daily cash budget. A cash budget prepared at the end of the month will suffice.
• C) Lockboxes are more important for fast food retailers such as McDonald's which deal primarily with cash than for manufacturers such as Xerox which are generally paid by check.
• D) A concentration banking system should not be used by firms that collect customers' payments using lockbox arrangements.
• E) Statements a, b, c, and d are all false.

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Definitions:

Neurons

Specialized cells within the nervous system that transmit information to other nerve cells, muscle, or gland cells, functioning as the basic working units of the brain and nervous system.

Sensory Information

Data received through the senses such as sight, hearing, smell, taste, and touch, which is then processed by the brain to understand and interact with the environment.

Conscious Patient

An individual who is awake, aware, and capable of understanding and responding to their environment and stimuli.

Electrically Stimulated

Refers to the activation of tissues, including nerves and muscles, using electric currents, often for therapeutic purposes.