Sally,the general manager at Trinkets Inc.has asked accounting to prepare a cash flow versus expenditure plan for the next year.Sally is asking for a __________ budget.
A) financial
B) flexible
C) fixed
D) zero-based

Question

Quizplus · Accepted Answer

Sally is asking for a cash flow versus expenditure plan, which is a key feature of a financial budget. A financial budget looks at the monetary resources and requirements of the company in the upcoming period, and this aligns with Sally's request. Flexible budgets are used to adjust for changes in activity levels, fixed budgets are prepared for a set period and are not adjusted for changes, and zero-based budgets start from scratch and require justification for every expense. None of these options match what Sally has requested.

Sally,the General Manager at Trinkets Inc