Asked by Peter Shibia on Jul 22, 2024
Verified
A plan that shows the expected cash inflows and cash outflows during the budget period,including receipts from loans needed to maintain a minimum cash balance and repayments of such loans,is called a(n) :
A) Capital expenditures budget.
B) Operating budget.
C) Rolling budget.
D) Cash budget.
E) Income statement.
Cash Inflows
Money received by a company during a specified period of time, from activities such as sales, financing, or investments.
Cash Outflows
Money or value going out of a business, often related to expenses and investments.
Cash Budget
A detailed plan that estimates all cash inflows and outflows over a specific period to manage a company's cash flow.
- Acquire knowledge on how to prepare cash budgets and manage the lowest acceptable levels of cash balances.
Verified Answer
KV
Khushbu VhoraJul 28, 2024
Final Answer :
D
Explanation :
A cash budget shows expected cash inflows and outflows, including loans and repayments, during a budget period. The other options (A, B, C, and E) do not specifically address cash inflows and outflows.
Learning Objectives
- Acquire knowledge on how to prepare cash budgets and manage the lowest acceptable levels of cash balances.