Which of these is a financial budget that estimates cash flows on a daily basis or weekly basis to ensure that the company can meet its obligations?
A) Capital expenditure budget
B) Balance sheet budget
C) Cash budget
D) Revenue budget
E) Profit budget

Question

Quizplus · Accepted Answer

A cash budget is a financial budget that estimates cash flows on a daily basis or weekly basis to ensure that the company can meet its obligations. It helps to forecast the company's cash inflows and outflows and ensures that there is always sufficient cash available to meet expenses and debt obligations. A capital expenditure budget is used to plan the company's long-term investments in fixed assets. A balance sheet budget is a budget that forecasts the company's assets, liabilities, and equity position. A revenue budget is used to forecast the company's expected revenues. A profit budget is used to forecast the company's expected profits.

Which of These Is a Financial Budget That Estimates Cash