Mark wants to make sure he does not run out of cash so he is preparing a monthly cash budget.After determining the percentage of cash collections by month,he should
A)estimate the amount and timing of cash disbursements.
B)calculate cash flow from operations.
C)determine the end-of-month cash balance.
D)determine beginning-of-the-month cash balance.

Question

Quizplus · Accepted Answer

After determining the percentage of cash collections by month, the next step in preparing a cash budget is to estimate the amount and timing of cash disbursements. This will allow Mark to accurately project his cash flow for the coming months and ensure he does not run out of cash. Calculating cash flow from operations, determining end-of-month cash balance, and determining beginning-of-month cash balance are important steps in cash budgeting, but they come after estimating cash disbursements.

Mark Wants to Make Sure He Does Not Run Out