Which of the Following Statements About Cash Management Is False

question 50

Multiple Choice

Which of the following statements about cash management is false?

• A)Depreciation expense does not appear explicitly on the cash budget, but its tax effects are included.
• B)If cash flows are not uniform during the month, then weekly or perhaps daily cash budgets should be prepared rather than monthly budgets.
• C)Compensating balance requirements do not affect a firm's target cash balance.
• D)Cash management involves costs, and it is important to analyze whether the benefits received outweigh the costs incurred.
• E)The cash budget is the foundation of good cash management.

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Definitions:

Discriminatory Consequences

The negative outcomes or impacts that arise when individuals or groups are treated unfairly based on characteristics such as race, gender, age, or disability.

Occupational Safety

The practice of ensuring that work environments are safe and free from hazards that could harm workers.

Health Act

Legislation aimed at ensuring the provision of healthcare services and the maintenance of public health standards, may refer to specific national laws or regulations.

Reverse Discrimination

Discrimination against members of a dominant or majority group, often as an attempt to correct historical discrimination against minority or disadvantaged groups.