Should depreciation expense be explicitly included in the cash budget of a business operation?

Fin 534 question 1 and 2 week 7 1839

Question A: Depreciation expense should not be explicitly included in the cash budget of a business operation as it represents an accounting adjustment, whereby one account (accumulated depreciation) will be reduced while another account (assets) will be increased. The actual cash outflow to replace the depreciated asset may never occur, therefore its inclusion may lead to inaccurate representations within the budget. As for short-term debt financing, advantages include cost-effectiveness due to no need for collateral or any other form of security; convenience associated with easy access; plus flexibility through timely repayment periods etc.. Disadvantages include potential incurring high interest rates over long range due creditors discretion practiced re: same furthermore side by side inflationary effects experienced taking into consideration likewise…

Question B: Multinational Corporation (MNCs) defined entities which expand operations beyond domestic boundaries normally countries abroad thereby making them global scale & able compete better against local firms thanks larger financial resources available alongside ability transfer technology/knowhow at fingertips plus attract skilled personnel perchance too… Exchange rate risks encountered when dealing foreign currencies posed problem such companies since their revenues/profits depend largely upon how well respective nations do economically speaking vis-à-vis each other meaning fluctuations seen headwinds taken seriously here naturally else situation can get dire quickly if left unchecked.