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.

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Definitions:

Financing

The process of providing or securing funds necessary for a project, purchase, or venture.

Oral Communication

The process of expressing information or ideas through spoken words.

Undesirable Emotions

Feelings or emotional states that are generally considered negative or unpleasant, such as sadness, anger, or fear, which people often seek to avoid or manage.

Conflicts

Involves disagreements, disputes, or clashes between individuals or groups due to differing views or objectives.