Which of the Following Statements About Cash Management Is False

Multiple Choice

Which of the following statements about cash management is false?

A) Depreciation expense does not appear explicitly on the cash budget, but its tax effects are included.
B) If cash flows are not uniform during the month, then weekly or perhaps daily cash budgets should be prepared rather than monthly budgets.
C) Compensating balance requirements do not affect a firm's target cash balance.
D) Cash management involves costs, and it is important to analyze whether the benefits received outweigh the costs incurred.
E) The cash budget is the foundation of good cash management.