Select True or False

A. The cash budget shows, often on a monthly basis, expected collections from sales, the cash payments that must be made during the period, and the projected cash flow for the period. Cumulative cash flow is determined, and the target cash balance is subtracted from the cumulative cash flow to determine the firm's need for financing or surplus cash available for investment. True or False

B. A line of credit is just another name for a promissory note. True or False

C. If Jakob were able to delay payment for 50 days rather than paying in 25 days, it would be "stretching"its trade credit. This would cause the calculated nominal cost of its trade credit to increase. True or False

D. Currency and demand deposits are defined to be "cash." Also, very safe, short-term, highly liquid marketable securities are sometimes included when people discuss a firm's "cash account." True or False