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Which of the Following Is a Financial Budget That Estimates

question 39

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Which of the following is a financial budget that estimates receipts and expenditures of money on a daily or weekly basis to ensure that an organization has sufficient cash to meet its obligations?


Definitions:

Cost of Capital

The necessary rate of earnings a firm must obtain from its investments to preserve its market worth and secure capital.

Initial Investment

The amount of money invested at the start of a project or business venture to get it off the ground.

Positive Future Cash Flows

The expectation or projection of an increase in the amount of money flowing into a company over a period of time, typically resulting from operations, investments, or financing activities.

Capital Budgeting Technique

A process of evaluating and comparing the potential expenditures or investments which are significant in amount, to determine their worthiness for funding.

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