When Estimating a Cash Budget,which of the Following Items Should

question 17

Multiple Choice

When estimating a cash budget,which of the following items should the firm NOT include in the process?

• A)taxes paid by creditors
• B)commission payments paid to sales personnel
• C)utility bills
• D)fixed cash expenses

---

Definitions:

Trading Investments

Securities bought and held primarily for selling them in the short term to profit from price fluctuations.

Fair Value

The estimated market value of an asset or liability, based on current prices in an active market.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period, highlighting the company's financial performance.

Available-For-Sale Investments

A classification for financial assets representing securities that are not classified as held-to-maturity or trading securities, marked to market with changes in value reflected in other comprehensive income.