Answered: dentify the option that is not an…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Q12

Identify the option that is not an advantage of maintaining cash budgets.

Select one:

a. Debtors can be paid more quickly.

b. Surplus cash can be put to more profitable uses if expected to occur.

c. Overdraft can be negotiated in advance of when they are needed.

d. Time is available to investigate the possible future sources of finance.

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

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