The most important part of the small business financial plan is the
A) income statement.
B) balance sheet.
C) inventory analysis.
D) cash budget.
E) break-even chart.

Question

Quizplus · Accepted Answer

The cash budget is the most important part of the small business financial plan because it helps the business to plan and manage its cash flow. This includes estimating the amount of cash coming in and going out over a specific period of time, ensuring the business has enough cash to meet its obligations and identify any potential cash shortfalls. Other financial statements and analyses such as the income statement, balance sheet, inventory analysis, and break-even chart are also important, but the cash budget is critical for the day-to-day financial management of a small business.

The Most Important Part of the Small Business Financial Plan