Question

Working capital needs of a company are projected by estimating what out-of-pocket expenses will be incurred and when the revenues from sales are to be collected, which is done by ________.

Answer 1

Making a cash budget (cash budgeting)

Step-by-step explanation:

Remember, amounts to be spent are called expenses and revenues from sales could cover this expenses.

One tool used today by businesses to determine the working capital or amounts needed to run operations is the cash budget.

Simply put, the cash budget contains information related to what out-of-pocket expenses will be incurred by a business, and when the revenues from sales are to be collected.