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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Definitions:

Securities Exchange Act of 1933

This foundational law regulates the securities industry in the United States, requiring transparency in financial statements to protect investors; similar purpose but distinct from KT-2 by ensuring ongoing disclosure by publicly traded companies.

Section 11

A provision found in securities law, particularly the Securities Act of 1933 in the United States, that deals with the liability associated with false or misleading statements in a company's registration statement.

Federal Government Cancels

Actions taken by the federal government to void or terminate a contract, policy, or agreement.

Registration Statement

A set of documents submitted by a company to the Securities and Exchange Commission (SEC) prior to issuing stock or securities to the public, containing detailed financial and operational information about the company.