Question

Which of the following statements concerning the cash budget is true?

A) It includes non-cash transactions
B) It represents future projections
C) It excludes all capital expenses
D) It only shows current cash reserves

Answer 1

The cash budget only shows current cash reserves.

Step-by-step explanation:

The cash budget is a financial statement that provides information about a company's cash inflows and outflows during a specific period of time. Only accurate and relevant cash transactions are included in the cash budget. Therefore, statement D) is true as it only shows the current cash reserves.