1. A cash budget:

a. Is used only by companies that operate on the cash basis of accounting.

b. Are often prepared on a weekly basis to manage short-term cash.

c. Does not take into account credit sales, since credit sales do not result in an immediate realization of cash.

d. Are quite useful to companies. that have strong seasonal sales, but are used primarily to make sure cash is available during the lag time.

2. Pension plans:

a. Reflect monies that are already set aside, and thus do not impact current operations.

b. Have a required minimum funding level; thus few pension plans are under-funded.

c. Are fully guaranteed by the Pension Benefit Guarantee Corporation (PBGC), so even if the company goes bankrupt, the retirees will get the amount promised them.

d. Reflect what can be a significant obligation for a company, and thus may have detailed information in the financial statements.