Explore BrainMass

How the nature of business affects cash budgeting decisions

Imagine you are preparing a business's cash budget, which involves determining the amount of cash to keep on hand. How might the nature of the business affect your decision? Provide specific examples in your response.

© BrainMass Inc. brainmass.com July 18, 2018, 10:25 pm ad1c9bdddf

Solution Preview

The nature of the business would affect the determination of how much cash to keep in hand in a few different ways. If the business is a bar, restaurant, or other establishment that takes in a lot of cash, and deals mainly in cash, it's likely that they'll need more cash on hand as ...

Solution Summary

This solution explains how the nature of business affects cash budgeting decisions.