D076 Module 8 Question and answers
correctly solved 2025/2026
cash budgeting - correct answer ✔a plan for controlling cash inflows and outflows business to balance
income with expenditures
What are three major uses of cash budgeting? - correct answer ✔indicating future financing needs,
providing a basis for corrective action, and providing the data for performance evaluation
When evaluating a company's performance, what can variances on a company's cash budget indicate? -
correct answer ✔Variances show that certain managers or divisions are not meeting targets.
How far into the future do cash budgets usually forecast? - correct answer ✔Between one month and
one year
What are three principles of budgeting that are important to know before beginning the budgeting
process? - correct answer ✔Keep records; develop savings, income, and expense strategies; and use a
method that meets your needs and objectives
What are the three main uses of cash budgets? - correct answer ✔Cash budgets are used to forecast
future financial need, aid in performance evaluation, and show when corrective action is needed.
What are three steps to budgeting? - correct answer ✔determine cash receipts, estimate cash
disbursements, create the cash budget
What are the five steps to create a budget for your personal finance? - correct answer ✔understand
your goals, track your savings, income, and expenses, develop a cash budget, implement your plan,
compare the cash budget to your actual spending and make necessary changes
correctly solved 2025/2026
cash budgeting - correct answer ✔a plan for controlling cash inflows and outflows business to balance
income with expenditures
What are three major uses of cash budgeting? - correct answer ✔indicating future financing needs,
providing a basis for corrective action, and providing the data for performance evaluation
When evaluating a company's performance, what can variances on a company's cash budget indicate? -
correct answer ✔Variances show that certain managers or divisions are not meeting targets.
How far into the future do cash budgets usually forecast? - correct answer ✔Between one month and
one year
What are three principles of budgeting that are important to know before beginning the budgeting
process? - correct answer ✔Keep records; develop savings, income, and expense strategies; and use a
method that meets your needs and objectives
What are the three main uses of cash budgets? - correct answer ✔Cash budgets are used to forecast
future financial need, aid in performance evaluation, and show when corrective action is needed.
What are three steps to budgeting? - correct answer ✔determine cash receipts, estimate cash
disbursements, create the cash budget
What are the five steps to create a budget for your personal finance? - correct answer ✔understand
your goals, track your savings, income, and expenses, develop a cash budget, implement your plan,
compare the cash budget to your actual spending and make necessary changes
