A firm's earnings are not determined by the cash budget but are determined by the income statement.

Name: A firm's earnings are not determined by the cash budget but are determined by the income statement.
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Question

A firm's earnings are not determined by the cash budget but are determined by the income statement.​

Quizplus · Accepted Answer

The cash budget helps to project and plan for cash inflows and outflows, but the firm's actual earnings are reported on the income statement based on revenue and expenses. The cash budget can impact cash flow and liquidity, but it does not directly determine earnings.

A Firm's Earnings Are Not Determined by the Cash Budget