An individual's cash budget differs from a firm's balance sheet because the cash budget 1.is for a period of time
2)enumerates assets and equity
3)is concerned with receipts and disbursements

Question

Quizplus · Accepted Answer

A cash budget is a financial plan that outlines expected cash inflows and outflows for a certain period of time, typically a month or a year. Therefore, option 1 is correct. Unlike a balance sheet, the cash budget does not enumerate assets and equity; instead, it focuses on projected cash receipts and disbursements, making option 2 incorrect. Hence, option 3 is correct. As options 1 and 3 are correct, option B is the correct answer.

An Individual's Cash Budget Differs from a Firm's Balance Sheet