A financial budget that estimates cash flows on a daily or weekly basis to ensure that the company can meet its obligations is called a:
A) capital expenditure budget
B) cash budget
C) balance sheet budget
D) revenue budget
E) profit budget.

Question

Quizplus · Accepted Answer

A cash budget is a financial budget that estimates the inflows and outflows of cash on a daily or weekly basis. It helps the company to ensure that they have enough cash available to meet their obligations such as salaries, rent, and other expenses. A capital expenditure budget estimates the expenses required for the acquisition of long-term assets. A balance sheet budget estimates the projected balance sheet accounts of the company. A revenue budget estimates the expected revenue of a company, while a profit budget estimates the expected profit of a company.

A Financial Budget That Estimates Cash Flows on a Daily