Steve has estimated the cash inflows and outflows for his sporting goods store for next year.The report that he has prepared summarizing these cash flows is called a:
A) pro forma income statement.
B) sales projection.
C) cash budget.
D) receivables analysis.
E) credit analysis.
F) None of the above.

Question

Quizplus · Accepted Answer

The report that Steve has prepared, summarizing the cash inflows and outflows for next year, is called a cash budget. A cash budget outlines the expected cash receipts and payments for a specific period, allowing the business to manage its cash flow effectively. Option A is incorrect as a pro forma income statement summarizes the projected revenue, expenses and profits of a business. Option B is incorrect as a sales projection predicts the amount of sales revenue a business will earn in a given period. Options D and E are irrelevant to the question.

Steve Has Estimated the Cash Inflows and Outflows for His