Question:
Which of the following is not true about a cash budget?
a. A cash budget sets out all cash receipts and payments that a business expects to make over a period of time.
b. Cash budgets are usually prepared on a month-to-month basis.
c. Cash budgets show the expected bank balance at the end of the month.
d. Cash budgets include personal cash receipts and expenses.
Cash Budget:
Cash Budget is a budgeted statement that forecasts the cash collections and cash disbursem*nts for an upcoming period. The cash budget starts with the cash balance at the start of the budget period and then expected cash collections are added and expected cash disbursem*nts are deducted which finally results in the budgeted ending cash balance.
Answer and Explanation:1
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Correct Answer:
Option (d) Cash budgets include personal cash receipts and expenses is the correct answer because the cash budget includes business...
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