Managers are alerted to projected cash shortages by way of the:

Question

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Cash shortages can be identified through cash budgeting, which is a tool used to project cash inflows and outflows for a specific period. By analyzing the projected cash flows, managers can identify any expected cash deficits and take corrective actions to avoid cash shortages. The other options, including the statement of sources and uses of cash, pro forma balance sheet, and monthly bank statements, may provide valuable information on cash flows but are not specifically designed to identify cash shortages.

Managers Are Alerted to Projected Cash Shortages by Way of The