Which Action Would Management Take If the Company Anticipates Selling

question 74

Multiple Choice

Which action would management take if the company anticipates selling $200,000 of goods, of which $20,000 will probably be uncollectible?

• A) They would add $220,000 to the cash budget.
• B) They would subtract $20,000 from the cash budget.
• C) They would not include the $20,000 in the cash budget.
• D) They would include $180,000 as a disbursement in the cash budget.

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