Management accountants usually provide for a minimum cash balance in their cash budgets for which of the following reasons:

Question

Quizplus · Accepted Answer

Providing a minimum cash balance in cash budgets helps to provide a safety buffer to account for any variations in estimates. This ensures that the company has enough funds available to cover unexpected expenses or revenue shortfalls. The other options (A, B, and D) are not accurate reasons for why management accountants provide for a minimum cash balance in cash budgets.

Management Accountants Usually Provide for a Minimum Cash Balance in Their