The Purpose of the Cash Budget Is To

question 30

Multiple Choice

The purpose of the cash budget is to:

• A) be used as a basis for the operating budgets.
• B) provide external users with an estimate of future cash flows.
• C) help managers plan ahead to make certain they will have enough cash on hand to meet their operating needs.
• D) summarize the cash flowing into and out of the business during the past perioD.
• The cash budget helps managers plan ahead to make certain they will have enough cash on hand to meet their operating needs.

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