Question

    What does the Cash Budget Method primarily help in

    determining?
    A The company's long-term growth potential Correct Answer Incorrect Answer
    B The short-term liquidity and cash flow position Correct Answer Incorrect Answer
    C The market share of the company Correct Answer Incorrect Answer
    D The value of fixed assets Correct Answer Incorrect Answer
    E The interest rate to be charged on the loan Correct Answer Incorrect Answer

    Solution

    The Cash Budget Method is primarily used to determine the short-term liquidity and cash flow position of a business. It projects future cash inflows and outflows to assess the company's ability to manage short-term obligations

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