Cash budgets can help financial managers determine when their firms are likely to have short-term surpluses of cash available to pay off loans or invest in other assets.

Question

Quizplus · Accepted Answer

Cash budgets are important tools for financial managers to help them forecast cash inflows and outflows, enabling them to determine when there may be excess cash available for paying down loans or investing in assets.

Cash Budgets Can Help Financial Managers Determine When Their Firms