Question

A cash budget will not help identify possible problem times.

True
False

Answer 1

False

The cash budget contains an itemization of the projected sources and uses of cash in the future. It is used to ascertain whether company operations and other activities will provide a sufficient amount of cash to meet projected cash requirements.

Answer 2

The correct answer is False

Step-by-step explanation:

A cash budget refers to a tool used to predict and control the amount of money that would be spent, this applies to the money that is expected will be spent in a business during a certain time or the money that is expected to be spent for a project. Due to this, in projects, a cash budget is useful to identify possible problems related to the budget or money including possible problem times. According to this, it is false a cash budget will not help identify possible problem times because is useful to predict problems related to money and time.