Asked by Marvelous Abraham on Jul 14, 2024
Verified
The cash budget summarizes future plans for the acquisition of fixed assets.
Cash Budget
A financial plan that estimates cash inflows and outflows over a specific period, often used by businesses to manage liquidity.
Fixed Assets
Long-term tangible pieces of property or equipment a business uses in its operations to generate income, not intended for sale within the business cycle.
- Understand the role of cash and capital expenditures budgets in financial planning.
Verified Answer
AC
Angelica ChavarinJul 16, 2024
Final Answer :
False
Explanation :
The cash budget is primarily focused on forecasting the cash inflows and outflows over a certain period, not specifically on plans for acquiring fixed assets.
Learning Objectives
- Understand the role of cash and capital expenditures budgets in financial planning.
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