In what way does a cash budget provide management with betterinformation about f

Question

In what way does a cash budget provide management with betterinformation about financing requirements than a pro forma balancesheet?
a. A pro forma cash budget gives greater details about thedepreciation of fixed assets. b. A pro forma cash budget not only delineates the financingthat is needed but it also pinpoints in greater detail when thefinancing is needed. c. A pro forma cash budget utilizes superior methods indetermining a firm's income tax liability for the plannedperiod. d. A pro forma cash budget does not offer better informationto management regarding financing than a pro forma balancesheet. In what way does a cash budget provide management with betterinformation about financing requirements than a pro forma balancesheet?
a. A pro forma cash budget gives greater details about thedepreciation of fixed assets. b. A pro forma cash budget not only delineates the financingthat is needed but it also pinpoints in greater detail when thefinancing is needed. c. A pro forma cash budget utilizes superior methods indetermining a firm's income tax liability for the plannedperiod. d. A pro forma cash budget does not offer better informationto management regarding financing than a pro forma balancesheet.

Explanation / Answer

In what way does a cash budget provide management with betterinformation about financing requirements than a pro forma balancesheet?

(b) A pro forma cash budget not onlydelineates the financing that is needed but it also pinpoints ingreater detail when the financing is needed.

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