A cash budget ________.
A)reports cash inflows and outflows from operating,investing,and financing activities
B)is a detailed plan of a company's estimated cash receipts and disbursements
C)is prepared using the indirect method
D)is prepared using the direct method

Question

Quizplus · Accepted Answer

A cash budget is a detailed plan of a company's estimated cash receipts and disbursements. It helps the company in managing its cash flow by providing information on expected cash inflows and outflows. Option A is not entirely correct as it refers to a cash flow statement which reports cash inflows and outflows from operating, investing, and financing activities. Options C and D are incorrect as they do not relate to the cash budget.

A Cash Budget ________