The cash budget may be used to determine whether a company will need additional financing for the coming period.

Name: The cash budget may be used to determine whether a company will need additional financing for the coming period.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The cash budget helps in forecasting the cash inflows and outflows for a certain period, which can help a company determine if it needs additional financing to cover any shortfall. Therefore, the statement is true.

The Cash Budget May Be Used to Determine Whether a Company