COST ACCOUNTING
THE MASTER BUDGET
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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reducing planned profits
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reducing planned cash payments
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reducing capital contributions
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increasing loan payments
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Detailed explanation-1: -Consider Borrowing Options Cash flow shortages occur when more money flows out of your company than into your company. One way to solve the problem is to find a way to bring money into the business. You can do this with a business loan or a credit card advance.
Detailed explanation-2: -Cash Deficit is a term used in accounting that means there is a difference between the estimated closing cash and the actual closing cash. In this scenario the estimated cash is greater than the actual closing cash.
Detailed explanation-3: -Cutting spending will help you to prevent or eliminate the deficit. If you limit your spending for the remaining quarters, you may make up or avoid a deficit with the revenue you bring in. Begin by eliminating the unnecessary spending in your organization.