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1. A cash budget is a detailed plan of (1 point) A. external financing needs. B....

1. A cash budget is a detailed plan of (1 point) A. external financing needs. B. future cash flows. C. past expenses. D future transactions. 2. Suppose a firm has sales in cash. When does the inflow of cash occur? (1 point) A. at the time of the sale B. depends on the terms of credit C. depends on collection patterns D. cannot be determined with the information provided

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Answer #1

A cash budget is a detailed plan of D future transactions.

Cash Budget estimates future cash incomes and cash Expenses. Thus, it helps in estimating cash requirement and analysing flow of cash.

Suppose a firm has sales in cash. When does the inflow of cash occur? C. depends on collection patterns

If the firm does cash sales the inflow of cash occurs at time of sales, but when sales is done on credit basis then cash flows in future period depending on the credit period.

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