ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Cash flow budgeting 101. A cash flow budget estimates your business’s cash flow over a specific time period. You can use the information to see if you have enough cash coming in to maintain regular operations over the given timeframe. It can also give insight into how to allocate your budget effectively.
Detailed explanation-2: -A budget differs from cash flow statement because a budget both projects how you expect to allocate the cash flow and records how the cash flow was actually spent at the end of the month.
Detailed explanation-3: -Answer and Explanation: Correct statement: c) In the statement of cash flows, a decrease in inventories is reported as a source of cash.
Detailed explanation-4: -A personal cash flow statement can serve as the basis for the budget categories used by an individual or family. Definite financial obligations are referred to as variable expenses. If budgeted spending is less than actual spending, this is referred to as a deficit.