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.

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Definitions:

Overhead Assigned

The allocation of overhead costs to specific products or cost centers within a company.

Materials Handling

The moving, protection, storage, and control of materials and products throughout manufacturing, warehousing, and distribution.

Direct Labor-Hours

The total hours of labor work directly on manufacturing the goods or providing the services, used for allocating labor costs to products or services.

Prefab Barns

Pre-engineered buildings designed for agricultural or storage purposes, which come in kits for quick and easy assembly.