Which of the Following Statements Regarding Cash Flows Is True

question 50

Multiple Choice

Which of the following statements regarding cash flows is true?

• A) Many managers consider cash flow budgets to be the least important of all the budgets.
• B) As long as accounting revenues exceed accounting expenses, cash flow budgets do not have to be prepared.
• C) It is possible for cash receipts to exceed revenues earned in a given month.
• D) As long as a manager is confident that there will eventually be a cash receipt from a customer, the timing of the cash receipt is not important.

Calculate the social cost of producing goods in the presence of external costs.

Evaluate the effects of externalities on the efficiency of the market outcomes.

Identify and justify the use of taxes or subsidies to achieve social optimum.

Analyze the impact of externalities on private and social costs and benefits.

---

Definitions:

Petrus Stuyvesant

The last Dutch Director-General of the colony of New Netherland until it was ceded to the English in 1664, known for his efforts to strengthen the colony's defenses and manage relations with Native Americans.

Dutch Reformed Church

A Protestant denomination that originated in the early 16th century during the Reformation in the Netherlands, with doctrines rooted in Calvinism.

Quakers

Members of the Religious Society of Friends, a Christian movement known for its commitment to pacifism, equality, and social justice.

Lutherans

Members of a Protestant denomination that follows the theological teachings and practices originated by Martin Luther.