Which of the following statements is/correct regarding the Cash Budget?The cash budget is a statement of a firm's planned inflows and outflows of cashthat is used to estimate its long-term cash requirement.Cash budgets and pro forma statements are usetul not only for internalfinancial planning but also are routinely required by the Internal Revenue Service(IRS)A cash budget gives the financial manager a clear view of the timing of a firm'sexpected profitability over a given periodSince depreciation and other noncash charges represent a scheduled write-off of an earlier cash outflow, they should not be included in the cash budget, thoughdepreciation charges will affect the taxes that a firm paysIIL.IVO Il and IIIland IVO V onlyO I only l

Cash budget - It is an estimate of cash inflow and cash outflow of a company . Cash budget are…

Which of the following statements is/correct regarding the Cash Budget? The cash budget is a statement of a firm's planned inflows and outflows of cas that is used to estimate its long-term cash requirement Cash budgets and pro forma statements are useful not only for internal financial planning but also are routinely required by the Internal Revenue Service (IRS) IL A cash budget gives the financial manager a clear view of the timing of a firm expected profitability over a given period IV Since depreciation and other noncash charges represent a scheduled write- off of an earlier cash outflow, they should not be included in the cash budget, thougt depreciation charges will affect the taxes that a firm pays O Il and III I and IV OV only O l onty

Which of the following statements is/correct regarding the Cash Budget? The cash budget is a statement of a firm's planned inflows and outflows of cas that is used to estimate its long-term cash requirement Cash budgets and pro forma statements are useful not only for internal financial planning but also are routinely required by the Internal Revenue Service (IRS) IL A cash budget gives the financial manager a clear view of the timing of a firm expected profitability over a given period IV Since depreciation and other noncash charges represent a scheduled write- off of an earlier cash outflow, they should not be included in the cash budget, thougt depreciation charges will affect the taxes that a firm pays O Il and III I and IV OV only O l onty

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 32E: Which of the following describes the order in which the four types of budgets must be prepared? a....

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The budget committee a. reviews the budget. b. resolves differences that arise as the budget is prepared. c. approves the final budget. d. is directed (typically) by the controller. e. All of these.
Which of the following statements is/correct regarding the Cash Budget? I. The cash budget is a statement of a firm's planned inflows and outflows of cash that is used to estimate its long-term cash requirement. II. Cash budgets and pro forma statements are useful not only for internal financial planning but also are routinely required by the Internal Revenue Service (IRS). III. A cash budget gives the financial manager a clear view of the timing of a firm's expected profitability over a given period. IV. Since depreciation and other noncash charges represent a scheduled write-off of an earlier cash outflow, they should not be included in the cash budget, though depreciation charges will affect the taxes that a firm pays. a. II and III b. I and IV c. IV only d. I only