QUESTION 1 Which of the following statements is false about cash budgets? O Cash receipts are calculated by adding up all the cash inflows in a given month O When calculating the cash budget the firm must consider many aspects such as, cash receipts, cash expenses, minimum desired cash balance, and previous loans. Cash receipts include sales, investment income and interest expenses. O All of the above are true

4. The difference between the budgeted amounts of Sales and Cash Received for sales is equal to the budgeted change in: a. Cash b. Accounts Receivable c. Accounts Payable d. Retained Earnings e. None of the Above

An income statement differs from a cash flow budget in the following ways: A.    A cash flow budget does not account for non-cash expenses B.    A cash flow budget includes full cost and sale value of capital assets C.     A cash flow budget includes non-farm income, loan receipts, and debt payments. D.     All of the above