Indicate Whether Each of the Following Statements About a Cash

question 50

Short Answer

Indicate whether each of the following statements about a cash budget is true or false.
1. A cash budget helps managers to anticipate cash shortages and excess cash balances.
2. The cash budget has two main sections: a cash deficit section and a financing section.
3. The total cash available is calculated by adding cash receipts and the ending cash balance.
4. Cash payments may include outflows for inventory, selling and administrative expenses, and depreciation.
5. Cash inflows and outflows indicated on the cash budget are reported on a company's pro forma statement of cash flows.

---

Definitions:

Social Structure

Social structure refers to the organized pattern of social relationships and social institutions that make up a society, shaping the behavior of its members.

Middle-Range Theories

Narrow, focused, theoretical frameworks that explain the conditions that produce some specific social behavior.

General Theories

Broad frameworks designed to explain a wide range of phenomena across contexts and time.

Theoretical Perspectives

Theories that make broad assumptions about human nature and offer general explanations of a wide range of diverse behaviors. See also Middle-range theories.