Asked by Abbee Darsey on Apr 25, 2024
Verified
The cash budget reflects
A) all revenues and all expenses for a period.
B) expected cash receipts and cash disbursements from all sources.
C) all the items that appear on a budgeted income statement.
D) all the items that appear on a budgeted balance sheet.
Cash Budget
A financial plan that estimates cash inflows and outflows over a specific period, crucial for managing liquidity and financing needs.
Cash Receipts
The collection of money (cash, checks, electronic transfers) received by a business from its operational activities.
Cash Disbursements
Payments made by a business in the course of its operations, typically tracked within cash flow statements.
- Attain familiarity with the structure and components of a cash budget.
Verified Answer
TK
Tomoki Kinoshita6 days ago
Final Answer :
B
Explanation :
The cash budget reflects expected cash receipts and cash disbursements from all sources. It does not include all revenues and expenses, or items that appear on a budgeted income statement or balance sheet. The purpose of the cash budget is to track the flow of cash in and out of a business over a certain period of time.
Learning Objectives
- Attain familiarity with the structure and components of a cash budget.