Multiple choice

Which of the following types of budget is prepared to assess the level of inventories, receivables, etc.?

  1. Material budget

  2. Profitability budget

  3. Cash budget

  4. Working capital budget

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Working capital budget specifies available working capital, i.e. investment in current assets like inventory, debtors, etc. at different points of time.