Cash budgeting can be employed effectively by management to ___________.
A) identify potential cash flow problems in advance
B) aid them in capital budgeting
C) control retained earnings
D) coordinate cash and deferred expenses

Question

Quizplus · Accepted Answer

Cash budgeting helps management to identify potential cash flow problems in advance by forecasting cash inflows and outflows, which allows them to take proactive measures to address any shortages before they occur. Cash budgeting is not typically used to aid capital budgeting, control retained earnings, or coordinate cash and deferred expenses.

Cash Budgeting Can Be Employed Effectively by Management to ___________