Question

In: Accounting

The primary reason that managers impose a minimum cash balance in the cash budget is a....

The primary reason that managers impose a minimum cash balance in the cash budget is

a.

that it protects the organization from the uncertainty of the budgeting process.
b.

that it makes the financial statements look more appealing to creditors.
c.

because management needs discretionary cash for unforeseen business opportunities.
d.

managers lack discipline to control their spending.

Solutions

Expert Solution

Answer: A) That it Protects the Organization from the Uncertainty of the budgeting process

Minimum Cash Balance is rEquired to Make the Smooth Functioning of the Firms' Operations Even though any Uncertain things are Happen. It Protect the fimr from the Uncertainty of the budgeting Process

ekkarill92 answered 2 years ago
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