Which of the Following Is an Advantage of a Cash

Multiple Choice

Which of the following is an advantage of a cash budget over the percentage of sales method?
I. A cash budget can more precisely estimate the amount of financing needed.
II. A cash budget can better estimate the timing of financing needs.

A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.