Which of the Following Is/are False

question 14

Multiple Choice

Which of the following is/are false?

• A)Firms do not necessarily recognize revenues when they receive cash
• B)Firms do not necessarily recognize expenses when they disburse cash.
• C)Net income will not necessarily equal cash flow from operations each period.
• D)A profitable firm will likely borrow funds in order to remain in business, but eventually operations must generate cash to repay the borrowing.
• E)None of the above are false

Understand the role of budget variance analysis in planning and control.

Learn the calculation of net operating income across different budgeting scenarios.

Understand the impact of activity level changes on budgeting and financial outcomes.

Understand the concept of budgeting in service, manufacturing, and medical businesses.

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Definitions:

Hire

The act of giving someone a job; it involves agreeing to employ an individual under specified terms.

Marginal Product

The rise in production resulting from one more unit of input, while keeping all other inputs unchanged.

Units of Output

The quantity of goods or services produced by a business, factory, or individual within a certain timeframe.

Value

Value refers to the importance, worth, or usefulness of something, often determined by its desirability, utility, or monetary worth.