A cash budget helps you:
A) monitor and control your finances.
B) analyze your financial position.
C) calculate your solvency ratio.
D) measure your net worth.
E) identify your long-term debt.

Question

Quizplus · Accepted Answer

A cash budget helps you monitor and control your finances by tracking your income and expenses over a period of time. It allows you to see where your money is going and make adjustments to your spending habits as necessary. While analyzing your financial position, calculating your solvency ratio, measuring your net worth, and identifying your long-term debt are all important financial tasks, a cash budget specifically focuses on cash flow management.

A Cash Budget Helps You