Question

In forecasting a firm's cash needs for some future period Multiple Choice the percent-of-sales method is a "broad-brush" approach. cash budgets are more exact than the percent-of-sales method. a cash budget approach can deal effectively with both level and seasonal production schedules. All of the options.

Answer 1

Answer: All of these

   

Explanation: Forecasting cash needs refers to predicting how much would a company need in future by analyzing the past records.

The percent of sales approach is a broader approach as it takes into consideration of how much financing is needed so that the company could increase its sales from existing level.

Under the cash budget, a statement is prepared depicting the needs of cash that might be needed. It is prepared in a summarized manner with each resource need separately defined.

Hence from the above we can conclude that the correct option is D.