alleryStart learning →What does a cash budget help a business determine about outside financing?
AWhen it must seek it
BThe interest it will earn
CWhich bank to select
DThe share price it needs
Answer & Solution
Correct answer: A. When it must seek it
By showing when income will fall short of expenses, the cash budget reveals when borrowing is needed.
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Related questions
Standard quantity for output is 480 kg; 500 kg used; std price Rs 10. Usage variance?Std price Rs 12 per kg, actual Rs 13 for 500 kg bought. Materials price variance?Opening cash Rs 20,000, receipts Rs 65,000, payments Rs 70,000. Closing cash balance?Sales budget 5,000 units, opening stock 400, desired closing stock 600. Units to produce?Budgeted material cost was Rs 50,000 and actual cost Rs 54,000. What is the variance?A budget stated as Rs 40,000 fixed cost plus Rs 5 per unit variable cost gives what total The adjusted net income method begins with which starting item?The direct receipts and disbursements method suits which forecast horizon best?