The plan that helps manage cash flow is the
A)Statement of cash flows.
B)Budgeted Income Statement.
C)Cash Budget.
D)Schedule of cash activities.

Question

Quizplus · Accepted Answer

A cash budget is a plan that helps manage cash flow. It provides information on the expected cash inflows and outflows over a specific period of time, allowing a business to anticipate any cash shortfalls or surpluses and take appropriate action. The statement of cash flows and schedule of cash activities are both financial reports that provide information on cash inflows and outflows, but they do not serve as a plan for managing cash flow. The budgeted income statement is a projection of expected revenues and expenses, but it does not provide the same detail on cash inflows and outflows.

The Plan That Helps Manage Cash Flow Is the