Which of the Following Describes the Cash Budget

question 112

Multiple Choice

Which of the following describes the cash budget?

• A) It aids in planning to ensure the company has adequate inventory and cash on hand.
• B) It captures the variable and fixed expenses of the business.
• C) It depicts the breakdown of sales based on terms of collection.
• D) It helps in planning to ensure the business has adequate cash.

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Definitions:

Delivery Charge

A fee charged by a seller to cover the cost of delivering goods to a buyer's location.

Valuation Rate

The interest rate or discount rate used in determining the present value of future cash flows or in appraising the value of an asset.

Market Value

The current price at which an asset or service can be bought or sold in a competitive marketplace.

Assessed Valuation

The dollar value assigned to a property for purposes of measuring applicable taxes, determined by a public tax assessor.