All of these are ways in which the cash budget can assist decision making, except:Group of answer choicesshowing the assets and liabilities owned by the firm.assisting with the planning and use of borrowed funds.identifying suitable times for the purchase of non-current assets.identifying periods of expected cash shortages or surpluses.
Question
All of these are ways in which the cash budget can assist decision making, except:Group of answer choicesshowing the assets and liabilities owned by the firm.assisting with the planning and use of borrowed funds.identifying suitable times for the purchase of non-current assets.identifying periods of expected cash shortages or surpluses.
Solution
The statement that does not describe a way in which the cash budget can assist decision making is "showing the assets and liabilities owned by the firm." A cash budget is a tool used for planning and controlling the use of cash in a business, including planning for borrowing and identifying suitable times for purchasing non-current assets, as well as identifying periods of expected cash shortages or surpluses. However, it does not show the assets and liabilities owned by the firm. That information is typically found in the balance sheet.
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