On Financial Forecasting, Planning, and Control Statement I: Budgeting is a tool for planning and control. Statement II: Cash budgets should include noncash charges such as depreciation. Statement III: Cash budgets are prepared on a long-term basis such as on a monthly, quarterly, or even weekly basis.
On Financial Forecasting, Planning, and Control Statement I: Budgeting is a tool for planning and control. Statement II: Cash budgets should include noncash charges such as depreciation. Statement III: Cash budgets are prepared on a long-term basis such as on a monthly, quarterly, or even weekly basis.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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CHOOSE THE CORRECT LETTER OF ANSWER FOR BOTH
Transcribed Image Text:On Financial Forecasting, Planning, and Control *
Statement I: Budgeting is a tool for planning and control.
Statement II: Cash budgets should include noncash charges such as depreciation.
Statement III: Cash budgets are prepared on a long-term basis such as on a monthly,
quarterly, or even weekly basis.
Only Statement II is correct
Only Statement II is false
Statements Il and III are false
Only Statement III is false
All statements are false
Transcribed Image Text:On Forecasting, Planning and Control *
Statement I: A shortcut approach to formulating a budget uses a version of the time-
series analysis.
Statement II: Computer-based financial planning methods are often used to develop
budgets in order to evaluate alternative courses of action.
Statement III: The idea behind preparing cash budgets is to increase unnecessary cash
surplus and deficit
Only Statement I is correct
Only Statement Il is correct
Statements I and III are correct
All statements are correct
All statements are false
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