Service companies prepare a cash budget.

Question

Quizplus · Accepted Answer

Service companies, like any other business, prepare cash budgets to manage their cash flows effectively. This helps them determine the amount of cash they need to cover their expenses and investments, as well as any excess funds they may have available for future projects or contingencies. A cash budget is an essential tool for service companies to maintain their financial stability and ensure the availability of cash when needed.

Service Companies Prepare a Cash Budget