Which of the Following Statements Is True About Cash Budgets

Multiple Choice

Which of the following statements is true about cash budgets?

A) They project cash surpluses but do not project cash shortages.
B) They are used by financial managers to get a better understanding of the timing of cash flows within the planning period.
C) They show projected cash inflows and outflows for each year over a ten­year period.
D) They are seldom important because all firms experience even cash inflows and outflows over the course of a year.