A document that allows the firm to plan its short-term cash needs with particular attention to periods of surplus and shortage so that short-term investments can be made during cash surplus times and short-term loans can be taken during cash shortages is called the ______.
A) cash-to-cash cycle
B) cash budget
C) cash planning statement
D) cash-flow statement

Question

Quizplus · Accepted Answer

A cash budget is specifically designed to help a firm plan its short-term cash needs. It highlights periods of surplus and shortage, enabling the firm to make decisions about short-term investments and loans.

A Document That Allows the Firm to Plan Its Short-Term