Because the typical cash budget shows cash flows only on a monthly basis, the information provided by the cash budget is not necessarily adequate for ensuring solvency.

Question

Quizplus · Accepted Answer

The cash budget only shows cash flows on a monthly basis, which may not be sufficient for determining solvency over a longer period of time. Other factors, such as unexpected expenses or changes in revenue, should also be considered.

Because the Typical Cash Budget Shows Cash Flows Only on a Monthly