A cash budget
A) is appropriate for a business in any industry.
B) shows expected cash receipts and planned payments.
C) shows expected sales and planned expenses.
D) is appropriate for a business in any industry AND shows expected cash receipts and planned payments.

Question

Quizplus · Accepted Answer

A cash budget is appropriate for a business in any industry and shows expected cash receipts and planned payments. It helps businesses plan for their cash needs and to ensure they have enough funds available to cover expenses and invest in growth opportunities. By forecasting cash inflows and outflows, a cash budget provides a clear picture of a company's financial health and enables better decision-making.

A Cash Budget