All of the Following Are Ways to Reduce Coping with Uncertainty

question 158

Multiple Choice

All of the following are ways to reduce coping with uncertainty in the cash budget EXCEPT:

• A) careful estimation of cash budgets inputs.
• B) developing a probability distribution of ending cash flows for each month by simulating the occurence of sales and other uncertain events.
• C) always using the prior year's data for estimates of the future.
• D) using scenario analysis, or "what if" approach, to analyze cash flows under a variety of situations.

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Definitions:

Check Stub

The part of a check that is retained as a record, detailing the amount paid, to whom, and for what purpose.

Balance Brought Forward

A term used in accounting to describe the amount carried over from a previous period or page in a financial statement or ledger.

Check Amount

The numeric value indicating the total funds payable by the check.

Balance Carried Forward

The amount of money from a previous accounting period that is transferred to the current period's accounts.