A plan that shows the expected cash inflows and cash outflows during the budget period, including receipts from loans needed to maintain a minimum cash balance and repayments of such loans, is called a(n):
A) Capital expenditures budget.
B) Operating budget.
C) Rolling budget.
D) Cash budget.
E) Income statement.

Question

Quizplus · Accepted Answer

A cash budget shows the expected cash inflows and outflows during the budget period, including loans and repayments. A capital expenditures budget shows planned spending on long-term assets, an operating budget shows expected revenues and expenses, a rolling budget continuously updates the budget based on recent information, and an income statement shows revenues and expenses for a specific period but does not focus on cash flows.

A Plan That Shows the Expected Cash Inflows and Cash