In Preparing and Using Any Budget, It Is Important That

question 10

Multiple Choice

In preparing and using any budget, it is important that managers keep in mind the

• A) assumptions and predictions upon which the budget is based.
• B) present value of future cash flow.
• C) budgeted profit and loss statement.
• D) 'bottom line'.

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Definitions:

Checkbook Balance

The current total amount of funds available in a checking account, reflecting all transactions that have been recorded in the checkbook ledger.

Bank Error

A mistake made by a bank in accounting transactions, deposits, withdrawals, or charges.

NSF Check

A non-sufficient funds (NSF) check is a check that cannot be processed because the account from which the funds are drawn does not have enough funds.

Adjusted Cash Balance

The cash balance reflected in the books after adjustments have been made for checks issued, deposits in transit, and other discrepancies.