BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A cash budget is an estimate of the actual money received and paid out for a specific period.
A
True
B
False
Explanation: 

Detailed explanation-1: -A cash budget is a company’s estimation of cash inflows and outflows over a specific period of time, which can be weekly, monthly, quarterly, or annually. A company will use a cash budget to determine whether it has sufficient cash to continue operating over the given time frame.

Detailed explanation-2: -A cash budget is an estimation of cash inflows and outflows over a specific period of time. Cash budgets are useful in that they can be produced for long-term and short-term goals, sometimes for as little as one week.

Detailed explanation-3: -By creating a cash budget-wherein a company develops a summary of the anticipated revenues, operating expenditures, sale and purchase of assets, and admission or settlement of debt – it is possible to determine when more cash resources are needed, as well as when there will be an excess of cash.

Detailed explanation-4: -A cash budget is a budget or plan of expected cash receipts and disbursements during the period. These cash inflows and outflows include revenues collected, expenses paid, and loans receipts and payments. In other words, a cash budget is an estimated projection of the company’s cash position in the future.

Detailed explanation-5: -A cash budget is an estimate of the actual money received and paid out for a specific period.

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