The financing section of a cash budget is needed if there is a cash deficiency or if the ending cash balance is less thanthe industry average.the prior years.management's minimum required balance.the amount needed to avoid a service charge at the bank.

If the ending cash balance of the company is deficient, the company borrows some cash to run its…

Answered: The financing section of a cash budget…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 14CDQ

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The financing section of a cash budget is needed if there is a cash deficiency or if the ending cash balance is less than

the industry average.
the prior years.
management's minimum required balance.
the amount needed to avoid a service charge at the bank.

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

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