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:

Indigenous

The descendants of groups of people living in the territory at the time when other groups of different cultures or ethnic origin arrived there.

Braves

Often refers to young Native American men, historically seen as warriors within their tribes, but the term can carry different meanings across cultures.

Hierarchy

A system or organization in which people or groups are ranked one above the other according to status or authority.

Ethnic Categories

Classifications of individuals into groups based on shared cultural, linguistic, or ancestral characteristics.