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Which of the following statements is most CORRECT? Answer A. The typical actual

ID: 2369162 • Letter: W

Question

Which of the following statements is most CORRECT?
Answer A.
The typical actual cash budget will reflect interest on loans and income from investment of surplus cash.These numbers are expected values and actual results might vary from budgeted results.
B.
The cash budget and the capital budget are planned separately and although they are both important to the firm, they are independent of each other.
C.
The target cash balance is set optimally such that it need not be adjusted for seasonal patterns and unanticipated fluctuations in receipts, although it is changed to reflect long-term changes in the firm
Which of the following statements is most CORRECT?
Which of the following statements is most CORRECT?
The typical actual cash budget will reflect interest on loans and income from investment of surplus cash.These numbers are expected values and actual results might vary from budgeted results.
The typical actual cash budget will reflect interest on loans and income from investment of surplus cash.These numbers are expected values and actual results might vary from budgeted results.
The cash budget and the capital budget are planned separately and although they are both important to the firm, they are independent of each other.
The cash budget and the capital budget are planned separately and although they are both important to the firm, they are independent of each other.
The target cash balance is set optimally such that it need not be adjusted for seasonal patterns and unanticipated fluctuations in receipts, although it is changed to reflect long-term changes in the firm
The target cash balance is set optimally such that it need not be adjusted for seasonal patterns and unanticipated fluctuations in receipts, although it is changed to reflect long-term changes in the firm A.
The typical actual cash budget will reflect interest on loans and income from investment of surplus cash.These numbers are expected values and actual results might vary from budgeted results.
B.
The cash budget and the capital budget are planned separately and although they are both important to the firm, they are independent of each other.
C.
The target cash balance is set optimally such that it need not be adjusted for seasonal patterns and unanticipated fluctuations in receipts, although it is changed to reflect long-term changes in the firm

Explanation / Answer

CORRECT ANSWER:


A.
The typical actual cash budget will reflect interest on loans and income from investment of surplus cash.These numbers are expected values and actual results might vary from budgeted results.
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