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
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
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
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
Approach to decide on the efficient procurement and investment of funds for the day-to-day operations of a business. Financial management aims at profit maximization, and it includes financing and capital budgeting.
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