It is true in relation to cash budgets that:
A) they are prepared by entities that sell entirely on credit.
B) they include depreciation.
C) they are based on preparing a projected bank reconciliation.
D) they are the last budget to be prepared.

Question

Quizplus · Accepted Answer

Entities that sell entirely on credit still need to prepare cash budgets to manage cash flow, as they need to plan for cash inflows and outflows despite not receiving immediate cash from sales.

It Is True in Relation to Cash Budgets That