Which of the Following Is Not an Advantage of Cash

question 34

Multiple Choice

Which of the following is not an advantage of cash budgeting?

• A) Idle funds are kept to a minimum.
• B) Cash shortages can be predicted.
• C) Cash is safeguarded.
• D) Future planning is facilitated.

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Definitions:

Compounded Monthly

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, done on a monthly basis.

Interest Saved

The amount of money that is not paid as interest due to paying off debt earlier or negotiating better rates.

Savings Account

A deposit account held at a financial institution that provides principal security and interest earnings.

Rate of Return

An indicator of the profit or loss on an investment, shown as a percentage of the investment's original value, for a defined timeframe.