Which of the following statements concerning the cash budget is CORRECT? Answer

Question

Which of the following statements concerning the cash budget is CORRECT? Answer Depreciation expense is not explicitly included, but depreciation's effects are reflected in the estimated tax payments. Cash budgets do not include financial items such as interest and dividend payments. Cash budgets do not include cash inflows from long-term sources such as the issuance of bonds. Changes that affect the DSO do not affect the cash budget. Capital budgeting decisions have no effect on the cash budget until projects go into operation and start producing revenues. Which of the following statements concerning the cash budget is CORRECT? Which of the following statements concerning the cash budget is CORRECT? Depreciation expense is not explicitly included, but depreciation's effects are reflected in the estimated tax payments. Cash budgets do not include financial items such as interest and dividend payments. Cash budgets do not include cash inflows from long-term sources such as the issuance of bonds. Changes that affect the DSO do not affect the cash budget. Capital budgeting decisions have no effect on the cash budget until projects go into operation and start producing revenues. Depreciation expense is not explicitly included, but depreciation's effects are reflected in the estimated tax payments. Cash budgets do not include financial items such as interest and dividend payments. Cash budgets do not include cash inflows from long-term sources such as the issuance of bonds. Changes that affect the DSO do not affect the cash budget. Capital budgeting decisions have no effect on the cash budget until projects go into operation and start producing revenues.

Explanation / Answer

Hi,

Option A (Depreciation expense is not explicitly included, but depreciation's effects are reflected in the estimated tax payments) is the correct answer.

Thanks.

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