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1. Describe at least three purposes of the budgetary process.
2. For a company's budget to have a positive effect on their employees, describe three guidelines for the budgeting process.
3. Describe two negative effects the budget can have on company employees if not properly applied.
4. Why is the Sales Budget often called the "cornerstone" of a master budget?
5. Explain why depreciation expense is not included as a cash disbursement on the cash budget.
The deferred income tax liability: a. Represents income tax payments that are deferred until future years because of temporary differences between GAAP rules and tax accounting rules. b. Is a contingent liability.
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