Q570
Budget, which predicts effect of given level of operations on a cash position is classified as
A.
market budget
B.
price schedule
C.
planned schedule
D.
cash budget
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Budget, which predicts effect of given level of operations on a cash position is classified as cash budget. A cash budget is an estimation of the cash inflows and outflows for a business over a specific period of time. This budget is used to assess whether the entity has sufficient cash to operate.