Which of the following statements is most CORRECT?
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A. |
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.
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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.
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C. |
The target cash balance is set optimally such that it need not be adjusted for seasonal patterns and unanticipated fluctuations in receipts, although it is changed to reflect long-term changes in the firm's operations.
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D. |
Since depreciation is a non-cash charge, it does not appear on nor have an effect on the cash budget.
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E. |
Shorter-term cash budgets, in general, are used primarily for planning purposes, while longer-term budgets are used for actual cash control.
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