Which Description Listed Below Best Defines "Cash Budget

question 136

Multiple Choice

Which description listed below best defines "cash budget"?

• A) Details as to how the company expects to go from the beginning cash balance to the desired ending cash balance
• B) A company's plan for purchases of property, plant and equipment, and other long-term assets
• C) A system for evaluating the performance of each responsibility centre and its manager
• D) A budget that projects cash inflows and outflows and the end of period budgeted balance sheet

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Definitions:

Future Value

The worth of a present asset on a future specified date, calculated using a projected growth rate.

Future Value

The value of a current asset at a specified date in the future based on an assumed rate of growth over time.

Future Value

The value of an investment at a specific future date, including interest earned or compound interest.

Compounded Quarterly

A method of calculating interest where the interest earned each quarter is added to the principal, so that the balance doesn’t merely grow, it grows at an increasing rate.