A company is preparing the cash budget.To find the ending cash balance for a month,they should take the beginning cash balance and add ________.
A)net cash receipts and disbursements and cash increase or decrease from financing
B)minimum cash balance and cash increase or decrease from financing
C)excess of cash before financing
D)excess of cash before financing and net cash receipts and disbursements

Question

Quizplus · Accepted Answer

The ending cash balance can be calculated by taking the beginning cash balance and adding net cash receipts and disbursements, as well as any cash increase or decrease from financing activities. This provides a comprehensive picture of the cash flows for the month and allows for accurate forecasting of the ending cash balance. Therefore, option A is the best choice.

A Company Is Preparing the Cash Budget