If your budget forecasts a future shortfall in cash flow,the best way to use your budget is to
A)eliminate all entertainment expenses for that period.
B)build an emergency fund to prepare for the shortfall.
C)increase cash flows from all sources.
D)obtain credit in advance of the predicted shortfall.

Question

Quizplus · Accepted Answer

Building an emergency fund to prepare for the shortfall is the best choice as it allows you to have a buffer and ensures that you can cover any unexpected expenses. Eliminating all entertainment expenses may not be feasible in some cases, and it may not be enough to cover the shortfall. Increasing cash flows from all sources and obtaining credit in advance of the predicted shortfall may not be feasible or desirable depending on the specific circumstances. Building an emergency fund is a proactive and sensible approach to managing a potential cash flow shortfall.

If Your Budget Forecasts a Future Shortfall in Cash Flow,the