Which of the Following Statements About Cash Management Is False

question 117

Multiple Choice

Which of the following statements about cash management is false?

• A) Depreciation expense does not appear explicitly on the cash budget,but its tax effects are included.
• B) If cash flows are not uniform during the month,then weekly or perhaps daily cash budgets should be prepared rather than monthly budgets.
• C) Compensating balance requirements do not affect a firm's target cash balance.
• D) Cash management involves costs,and it is important to analyze whether the benefits received outweigh the costs included.
• E) The cash budget is the foundation of good cash management.

---

Definitions:

Text

Written or printed words regarded as forming a body of work, typically arranged in a medium such as books, websites, or documents.

Introduce

The act of presenting someone or something to others for the first time.

Important Topics

Subjects or matters of significant value, concern, or interest in a given context.

Entire Team

All members of a group or organization working together towards a common goal, emphasizing inclusivity and collective effort.