If Your Budget Forecasts a Shortfall in Cash Flow,the Best

question 61

Multiple Choice

If your budget forecasts a shortfall in cash flow,the best way to use your budget is to

• A)eliminate all entertainment expenses for that period.
• B)build an emergency fund to prepare for the shortfall.
• C)increase cash flows from all sources not previously recorded.
• D)obtain credit in advance of the predicted shortfall.

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Definitions:

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic, concept, method, or decision.

Base-Rate Information

Statistical information about the relative frequency of events or characteristics within a given population.

Concentrated Practice

An intense form of study or skill acquisition in which an individual focuses their efforts on improving a particular area or task for a short, dedicated period of time.

Expertise

The skill or knowledge an individual has acquired in a particular area, often as a result of experience or training.