Bella is a financial manager at Fiber Fundamentals Inc., a producer of fiber optics for use in high speed communication devices. She makes a budget that shows the anticipated receipts and expenses of the company. As the last budget that she creates for the upcoming year, it also shows the amount of working capital available and whether the company will need loans. Which of the following types of budgets has Bella created?
A)a master budget
B)a cash budget
C)a cost production budget
D)a production budget
E)a sales budget

Question

Quizplus · Accepted Answer

A cash budget is a financial plan that estimates cash inflows and outflows over a specific period, showing anticipated receipts, expenses, working capital, and potential need for loans.

Bella Is a Financial Manager at Fiber Fundamentals Inc