Kliting Co.is concerned with whether or not it will be able to pay its bills with money coming in from sales.It would be helpful for Kliting to prepare a ____ to better understand its needs.
A) capital budget
B) negative-flow budget
C) cash budget
D) loan application
E) revolving credit agreement

Question

Quizplus · Accepted Answer

A cash budget is a projection of a company's cash inflows and outflows over a specific period of time, typically a month or a quarter. It helps the company determine whether it will have enough cash to meet its financial obligations, such as paying bills, making payroll, and covering debt obligations. A capital budget is focused on investments in long-term assets, a negative-flow budget is not a commonly used term, and a loan application and revolving credit agreement are financing options rather than budgeting tools.