After W&H Inc. has developed a cash budget, what should the company do in the following months? -
It should monitor its actual cash flows and then revise the cash budget if needed.
W&H Inc.'s labor costs each month are an example of which item in a cash budget? - Cash
disbursement
Why would cre...
d076 Module 8 QUIZ
After W&H Inc. has developed a cash budget, what should the company do in the following months? -
✔✔It should monitor its actual cash flows and then revise the cash budget if needed.
W&H Inc.'s labor costs each month are an example of which item in a cash budget? - ✔✔Cash
disbursement
Why would creating a cash budget be useful for W&H if the firm needs a loan from the bank or another
short-term lender? - ✔✔Cash budgets increase the lender's trust in a firm by demonstrating the firm's
ability to make profits and repay loans.
How do the benefits of knowing the cash position for each period differ between businesses and
individuals? - ✔✔Knowing the cash position allows businesses to recognize when short-term loans are
needed, while it allows individuals to analyze progress toward their personal financial goals.
What is the difference between tracking and monitoring cash flows? - ✔✔Monitoring involves using
your tracking record to evaluate cash flows against your target, identify patterns and changes in cash
flows, and gauge when correction is needed.
What is the main reason why it is important to track and record cash flows? - ✔✔Tracking your cash
flows allows you to recognize where and how your money is spent so you can monitor your cash flows
and revise your budget as needed.
In what situation might the software method of tracking be preferable to the spreadsheet method of
tracking? - ✔✔When a person has a hard time remembering to record their cash flows and when they
prefer to use a card to make purchases
What is the purpose of monitoring your cash flows? - ✔✔Monitoring allows you to evaluate whether
your actual cash flows are in line with your goals and to understand when correction or revision is
needed.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller dennisgathiru. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
