Which Statement Best Describes Cash Budgets

Multiple Choice

Which statement best describes cash budgets?

A) Shorter-term cash budgets, in general, are used primarily for planning purposes, while longer-term budgets are used for actual cash control.
B) The cash budget and the capital budget are planned separately and although they are both important to the firm, they are independent of each other.
C) Since depreciation is a noncash charge, it does not appear on nor have an effect on the cash budget.
D) The typical actual cash budget will reflect interest on loans and income from investment of surplus cash. These numbers are expected values and actual results might vary from budgeted results.