Asked by Kaleigh LaPierre on May 10, 2024
Verified
Estimated cash payments are planned reductions in cash from all of the following except
A) manufacturing and operating expenses
B) capital expenditures
C) notes and accounts receivable collections
D) payments for interest or dividends
Capital Expenditures
Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.
Operating Expenses
Costs associated with the daily operations of a business, excluding the cost of goods sold.
Accounts Receivable
Funds that customers owe to a business for products or services delivered but have not yet been paid for.
- Become versed in the concept of cash flow management, taking into account the importance of both receipts and payments.
- Deduce projected cash movements from sales and budget forecasts.
- Identify factors excluding cash payments in budgeting such as depreciation expense.
Verified Answer
WB
Wyatt BoswellMay 17, 2024
Final Answer :
C
Explanation :
The estimated cash payments are planned reductions in cash, so they do not include the collections of notes and accounts receivable. The other options (manufacturing and operating expenses, capital expenditures, payments for interest or dividends) all involve cash outflows.
Learning Objectives
- Become versed in the concept of cash flow management, taking into account the importance of both receipts and payments.
- Deduce projected cash movements from sales and budget forecasts.
- Identify factors excluding cash payments in budgeting such as depreciation expense.