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:

Basal Ganglia

A group of structures located deep within the cerebral hemispheres of the brain, involved in a variety of processes including control of voluntary motor movements, procedural learning, habit learning, eye movements, cognition, and emotion.

Magical Thinking

The belief that one's thoughts, words, or actions can influence or bring about events in the physical world in an illogical or unrealistic way.

Repeating Behavior

The act of performing the same action or sequence of actions multiple times, often seen in various neuropsychiatric conditions.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, which leads to changes in voluntary behavior.