The Term "Cash Build" Is Measured As

question 65

Multiple Choice

The term "cash build" is measured as:

• A)net income plus depreciation
• B)net sales minus expenses minus (plus)an increase (decrease)in inventories
• C)net sales minus (plus)an increase (decrease)in receivables
• D)net income plus depreciation minus (plus)an increase (decrease)in payables

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Definitions:

Operating Budgets

A financial plan that estimates the expected income and expenses for a specific period in the future, often used to guide business activities.

Continuous Budgets

Budgets that are regularly updated by adding a new period as the current period is completed, facilitating constant financial planning.

Sales Budget

A financial plan that estimates the expected revenue from sales over a specific period, guiding business strategies and operations.

Sales Forecasts

Predictions about the future sales performance of a company or product, based on market analysis and historical sales data, used for planning purposes.