Asked by Grace Gould on Jul 08, 2024
Verified
If a monthly cash budget is prepared properly there will never be a cash deficiency at the end of any month.
Cash Budget
A financial plan that projects cash inflows and outflows over a specific period, helping businesses manage their liquidity.
Cash Deficiency
A situation where a business or individual has insufficient cash to cover expenses or liabilities.
- Acquire knowledge on the basics of budget management and the critical role of authority and responsibility.
Verified Answer
LR
lizbeth rochaJul 15, 2024
Final Answer :
False
Explanation :
While a monthly cash budget can certainly help prevent cash deficiencies, unexpected expenses or changes in income can still occur and lead to a cash shortfall. A cash budget is a useful tool for managing finances, but it cannot guarantee a cash surplus at the end of every month.
Learning Objectives
- Acquire knowledge on the basics of budget management and the critical role of authority and responsibility.
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