Miriam Wants to Make Sure She Does Not Run Out

question 55

Multiple Choice

Miriam wants to make sure she does not run out of cash so she is preparing a monthly cash budget. The first step is:

• A) estimate the amount of cash disbursements.
• B) calculate cash flow from operations.
• C) determine the percentage of cash collections by month.
• D) determine beginning-of -the -month cash balance.

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Definitions:

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet or an account record.