There Are Three Steps to Constructing a Cash Budget

question 17

Multiple Choice

There are three steps to constructing a cash budget.Which of the following is not one of those steps?

• A) Calculate whether the firm is facing a cash shortage or surplus.
• B) Forecast the uses of cash.
• C) Set a policy for deciding how much time to give customers to pay.
• D) Forecast the sources of cash.

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Definitions:

Short-Run Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a specific time period, under the presumption of some fixed costs.

Aggregate Demand

Entire level of requisition for goods and services in an economy, marked at a certain unified price level over a distinct time phase.

Money Supply

The entirety of financial assets at a specific point in time within an economy, including the total of cash, coins, and balances in savings and checking accounts.

Interest Rate

The fee a lender imposes on a borrower for utilizing assets, denoted as a portion of the primary sum.