The excess or deficiency of cash available over disbursements on the cash budget is calculated as follows:

Question

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The excess or deficiency of cash available over disbursements on the cash budget is calculated by adding the beginning balance to the expected cash receipts and then subtracting the expected cash disbursements. This gives an accurate measure of the cash available or shortfall for a specific period. Option A subtracts the expected cash disbursements twice, while option B adds disbursements instead of subtracting them to arrive at the excess or deficiency of cash available. Option D is incorrect as it does not provide any viable option for calculating the excess or deficiency of cash.

The Excess or Deficiency of Cash Available Over Disbursements on the Cash