A cash budget helps you:
A)monitor and control your finances.
B)analyze your financial position.
C)calculate your fixed assets ratio.
D)calculate your investment turnover ratio.
E)analyze the use of debt in a capital structure.

Question

Quizplus · Accepted Answer

A cash budget helps individuals or businesses monitor and control their finances by providing a projection of expected cash inflows and outflows for a specific period. It helps to identify potential cash shortages or surpluses, and allows for proper financial planning and decision-making. The other choices are unrelated to the purpose of a cash budget.

A Cash Budget Helps You