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in the cash budget, the cash excess (surplus) or deficiency (deficit) is calculated using which of...

in the cash budget, the cash excess (surplus) or deficiency (deficit) is calculated using which of the following formulas

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Answer #1

Answer

  • The formula for calculating the Cash excess (surplus) or Deficiency in the Cash Budget
    = Beginning Cash + Receipts – Disbursements.
  • Excess Cash is available when Beginning Cash + Cash receipts ARE MORE THAN Cash disbursements.
  • There is a Deficiency or Shortfall in Cash available when Cash Disbursements are MORE THAN Beginning Cash + Cash receipts.

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