MULTIPLE CHOICE:

1) Since it is based on cash flows, the discounted cash flow (DCF) method of valuation has the added advantage that it is not subject to the bias of different:

A. Discount rates

B. Internal rates of return

C. Monetary systems

D. Accounting policies for determining total assets and net income

2) Which of the following budgets must be completed before preparing a cash budget?

A. Cash receipts budget.

B. Rolling budget.

C. Cash financing budget.

D. Pro forma balance sheet.

E. Pro forma income statement.