Question

"The most significant purpose of the cash budget is to plan accounts payable payments.

A True
B False"

Answer 1

The most significant purpose of the cash budget is to plan and manage cash flow, including the inflow and outflow of money.

Step-by-step explanation:

The statement is False. The most significant purpose of the cash budget is to plan and manage cash flow, including the inflow and outflow of money. This budget helps a business monitor its cash position, predict cash shortages or surpluses, and make informed and timely financial decisions. It is used to plan for various expenses, such as purchases of inventory or equipment, payment of loans, salaries, and other operating expenses.