If the cash budget showed a projected cash shortage, the company would most likely
A)make fewer purchases of inventory so they could control costs.
B)lay off workers for that period.
C)arrange to borrow the necessary cash for that period.
D)cut salaries for that period.

Question

Quizplus · Accepted Answer

Arranging to borrow the necessary cash is a common solution for a projected cash shortage, as it allows the company to meet its obligations without disrupting operations.

If the Cash Budget Showed a Projected Cash Shortage, the Company