In the cash budget,additional financing is needed if:
A)the cash available before new financing exceeds the budgeted cash balance.
B)the budgeted cash balance exceeds the cash available before new financing.
C)the cash used for investing exceeds the budgeted cash balance.
D)the budgeted cash balances exceeds the cash used for investing.

Question

Quizplus · Accepted Answer

In the cash budget, if the budgeted cash balance exceeds the cash available before new financing, it means that the company is not generating enough cash to cover its expenses and may need additional financing to continue its operations. Therefore, option B is the correct choice. Options A, C, and D are incorrect because they do not accurately represent the need for additional financing.

In the Cash Budget,additional Financing Is Needed If