The cash budget provides management with information. Which of the following is not an example of information a cash budget provides?
The need for internal financing.
Availability of funds for distribution to owners.
Availability of funds for the repayment of debt.
Availability of funds for investment purposes.
Choice "A" is correct. The cash budget provides information concerning the need for external financing, not internal financing.Choices "b", "c", and "d" are incorrect. They are all examples of information a cash budget provides.
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