Which of the following is not a step in creating a cash budget?
A)Determining an adequate minimum cash balance
B)Forecasting profits
C)Forecasting cash receipts
D)Forecasting cash disbursements

Question

Quizplus · Accepted Answer

Forecasting profits is not a step in creating a cash budget. A cash budget focuses on forecasting cash receipts and disbursements to determine the expected cash balance over a specific time period. Profit is a different concept that takes into account all revenues and expenses, regardless of when cash exchanges hands.

Which of the Following Is Not a Step in Creating