a) Cash budget deals with historical data whereas cash flow statement deals with future data.

1. True
2. False

Question

16-06-2024
Business

Answered

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a) Cash budget deals with historical data whereas cash flow statement deals with future data.

1. True
2. False

Sagot :

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GinnyAnswer GinnyAnswer · Answer 1 · 2024-06-16T06:09:46-04:00

Final answer:

The cash budget and cash flow statement provide insights into an organization's financial position, differing in the time frame they cover.

Explanation:

False

The statement is false. Both the cash budget and the cash flow statement provide insights into an organization's financial position, but they differ in terms of the time frame they cover. A cash budget is a forward-looking financial plan that outlines expected cash inflows and outflows over a specific period, typically used for internal planning. In contrast, a cash flow statement summarizes how cash moves in and out of the organization over a specific period, reflecting the actual cash transactions that occurred.

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Sagot :

Final answer:

Explanation:

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