Question

A company's expected receipts from sales and planned disbursements to pay bills is commonly called a:

Answer 1

Answer:

Cash budget.

Explanation:

A company's expected receipts from sales and planned disbursements to pay bills is commonly called a cash budget.

A cash budget can be defined as a budget consisting of expected cash receipts or estimation of the cash flows and planned disbursements to pay bills, for a business over a specific period of time.

In Financial accounting, a cash budget is typically used to determine whether a business firm has sufficient funds for its smooth operations and evaluate if cash are being spent judiciously or productively. A cash budget comprises of financial items such as costs incurred or expenses paid, revenues generated, payments and loan receipts collected.