Steve has estimated the cash inflows and outflows for his hardware store for next year. The report that he has prepared recapping these cash flows is called a:
A) pro forma income statement.
B) sales projection.
C) cash budget.
D) receivables analysis.
E) credit analysis.

Question

Quizplus · Accepted Answer

A cash budget is a report that predicts the projected cash inflows and outflows for a business over a period of time, typically a year. It helps businesses manage their finances more effectively by identifying potential cash shortages or surpluses in advance. Steve's report fits the description of a cash budget. A pro forma income statement is a projected financial statement that estimates a business's revenue and expenses for a future period. A sales projection is a forecast of expected sales volume. Receivables analysis and credit analysis are both tools used to assess a business's creditworthiness and ability to pay back debts, and are not relevant to Steve's cash flow projections.

Steve Has Estimated the Cash Inflows and Outflows for His