A simple listing of expected cash inflows and outflows provides the entrepreneur with a(n):
A)statement of profit and loss.
B)cash budget.
C)pro forma statement of financial position.
D)net equity computation.

Question

Quizplus · Accepted Answer

A cash budget provides a simple listing of expected cash inflows and outflows, allowing the entrepreneur to estimate their cash position over a specific period of time. This is different from a statement of profit and loss (which shows revenues, expenses, and net income over a period of time), a pro forma statement of financial position (which shows projected assets, liabilities, and equity at a point in time), and a net equity computation (which calculates the value of total assets minus total liabilities).

A Simple Listing of Expected Cash Inflows and Outflows Provides