Select the Incorrect Statement Regarding the Cash Budget

question 106

Multiple Choice

Select the incorrect statement regarding the cash budget.

• A) The cash budget helps managers to anticipate cash shortages and excess cash balances.
• B) Cash inflows and outflows indicated on the cash budget are reported on a company's pro forma statement of cash flows.
• C) Cash payments may include outflows for inventory, selling and administrative expenses, and equipment purchases.
• D) The total cash available is calculated by adding cash receipts and the ending cash balance.

---

Definitions:

Promissory Estoppel

Promissory estoppel is a legal doctrine that enforces a promise made when the promisee has relied on that promise to their detriment, even if a formal contract does not exist.

Good-Faith Reliance

Acting based on the honest belief or trust in the legitimacy or accuracy of something.

Statute of Frauds

A legal concept requiring certain types of contracts to be in writing and signed by the party being charged, to prevent fraud and perjuries in the court system.

Statute of Limitations

Law that sets the maximum period which one can wait before filing a lawsuit, depending on the type of case or claim.