Cash budget is a budget showing:
A)Forecast levels of future cash to be paid to suppliers.
B)Forecast levels of future cash flows into and out of the organisation.
C)Forecast levels of future cash to be received from customers.
D)Forecast levels of future cash needs by a retail business.

Question

Quizplus · Accepted Answer

A cash budget shows the forecast levels of future cash inflows and outflows for an organization. It helps in managing cash flow by identifying potential shortfalls or surpluses in cash reserves. It takes into account factors such as revenue, expenses, and investment activities to estimate the organization's cash position over a specific period. Options A, C, and D are incorrect because they represent only one aspect of the cash budget and not the entire picture.

Cash Budget Is a Budget Showing