What is the purpose of the financing section of a cash budget?
A)to indicate amounts that should be borrowed when the ending cash balance is less than the prior year
B)to indicate amounts that should be borrowed when the ending cash balance is less than the amount management desires
C)to indicate amounts that should be borrowed when expenses exceed revenues
D)to comply with GAAP budgeting requirements

Question

Quizplus · Accepted Answer

The financing section of a cash budget is used to indicate the amount of funds that should be borrowed when the ending cash balance is less than the amount management desires. This section helps a company to make informed decisions regarding borrowing needs and the cost of debt financing.

What Is the Purpose of the Financing Section of a Cash