Which one of the following statements is true?

Question

Quizplus · Accepted Answer

All three statements are true. The cash budget is indeed a useful planning tool for entrepreneurs as it helps them anticipate future cash flows and plan accordingly. The cash budget also summarizes the cash flows into and out of the firm over a period of time, which helps entrepreneurs better understand their financial position. Furthermore, preparing a cash budget is important for determining how much external financing may be needed and when, which can be crucial for the success of a business.

Which One of the Following Statements Is True