Preparation of the Cash Budget Starts ________

question 237

Multiple Choice

Preparation of the cash budget starts ________.

• A)with net income and makes adjustments for all the items that are not cash
• B)by converting every number on the income statement to its cash amount
• C)by estimating the sources of cash and the uses of cash
• D)with cash collected from customers

---

Definitions:

Maker

In financial terms, the party that creates or issues a financial instrument, such as a check or promissory note.

Payee

The individual or entity to whom a payment is to be made or credited.

Allowance Account

A contra-asset account used to record adjustments to accounts receivable, reflecting the amounts expected not to be collected.

Uncollectible

Refers to accounts receivable that are considered to be uncollectable from debtors due to their inability to pay.