An anticipated need for short-term borrowed funds is best shown in a(n) _____.
A) operating budget
B) capital budget
C) production budget
D) cash budget

Question

Quizplus · Accepted Answer

A cash budget outlines a company's anticipated cash inflows and outflows over a specific period of time. It helps identify when cash shortages or surpluses are expected to occur, allowing managers to plan accordingly. If a cash shortage is anticipated in the short-term, the company may need to seek short-term borrowing to cover the shortfall. Therefore, an anticipated need for short-term borrowed funds is best shown in a cash budget.

An Anticipated Need for Short-Term Borrowed Funds Is Best Shown