Kate is a financial manager at Nature Feeds,a manufacturer of cattle feed.She makes a budget that shows the anticipated receipts and expenses of the company.The budget also shows her the amount of working capital available and whether the company will need loans.This is the last budget that Kate creates for the upcoming year.Which of the following types of budget is exemplified in this scenario?
A) Master budget
B) Cash budget
C) Cost production budget
D) Production budget
E) Sales budget

Question

Quizplus · Accepted Answer

The cash budget should be prepared after all other budget estimates are completed.The cash budget shows the anticipated receipts and expenditures,the amount of working capital available,the extent to which outside financing may be required,and the periods and amounts of cash available.This best describes the budget prepared by Kate in the scenario.

Kate Is a Financial Manager at Nature Feeds,a Manufacturer of Cattle