110.The selling and administrative expense budget is prepared prior to the cash budget. True False 111.Depreciation expense will appear on the schedule of cash payments for selling and...

110.The selling and administrative expense budget is prepared prior to the cash budget.



True False

111.Depreciation expense will appear on the schedule of cash payments for selling and administrative expenses.



True False

112.The basic cash budget format is total cash available - total cash disbursed = surplus or shortage of cash +/- the effects of financing = ending cash.



True False

113.The cash budget includes three sections: (1) operating activities, (2) investing activities, and (3) financing activities.



True False

114.The cash budget is not the same as the pro forma cash flow statement.



True False

115.Pro forma financial statements are prepared at the end of the year and are used to evaluate the performance of managers.



True False

116.The pro forma income statement gives managers an advance estimate of a company's profitability.



True False

117.If a financial statement is labeled "pro forma" this means that the statement was prepared by a professional accountant (usually the firm's auditor) following a prescribed format.



True False