Budget, which predicts effect of given level of operations on a cash position is classified as
A
market budget
B
price schedule
C
planned schedule
D
cash budget
Correct Answer: cash budget
Budget, which predicts effect of given level of operations on a cash position is classified as cash budget. A cash budget is an estimation of the cash inflows and outflows for a business over a specific period of time. This budget is used to assess whether the entity has sufficient cash to operate.