To address the difference between budgeted cash receipts and budgeted cash disbursements, managers also budget which of the following?
A) Debits and credits
B) Short-term borrowing or investments
C) Dividend payments
D) Net income

Question

Quizplus · Accepted Answer

Managers also budget short-term borrowing or investments to bridge the gap between budgeted cash receipts and budgeted cash disbursements. This allows the company to maintain adequate cash levels and meet its financial obligations. Option A is incorrect as debits and credits refer to accounting entries and not budgeting. Option C is incorrect as dividend payments are a cash disbursement and already considered in budgeted cash disbursements. Option D is incorrect as net income is a result of budgeted revenues and expenses and not a budgeted item.

To Address the Difference Between Budgeted Cash Receipts and Budgeted