Podcast
Questions and Answers
What is the purpose of the cash forecasting procedure described in the text?
What is the purpose of the cash forecasting procedure described in the text?
- To monitor daily bank reconciliation
- To track payroll expenditures
- To prepare a periodic cash forecast (correct)
- To conduct historical sales analysis
What action is recommended to improve a company's borrowing needs according to the text?
What action is recommended to improve a company's borrowing needs according to the text?
- Improving forecast accuracy (correct)
- Ignoring cash flow variance
- Increasing capital expenditures
- Reducing forecast accuracy
What is the first step for the treasury staff when creating a cash forecast?
What is the first step for the treasury staff when creating a cash forecast?
- Clearing all numbers from the forecast model
- Locking the most recent completed worksheet
- Obtaining payment information from the payables system
- Creating a new worksheet within the forecast spreadsheet (correct)
How should the treasury staff label the tab of the new version of the cash forecast?
How should the treasury staff label the tab of the new version of the cash forecast?
In the text, what information should be entered in the forecast from the payables system?
In the text, what information should be entered in the forecast from the payables system?
What should the treasury staff obtain from the financial analyst for the cash forecast?
What should the treasury staff obtain from the financial analyst for the cash forecast?
Why is it important for a company to obtain estimates of receipt dates for receivables?
Why is it important for a company to obtain estimates of receipt dates for receivables?
What action helps companies mitigate their borrowing needs?
What action helps companies mitigate their borrowing needs?
What information should be cleared from the forecast model in a new worksheet?
What information should be cleared from the forecast model in a new worksheet?
Which department provides information about scheduled wage and commission payments for the cash forecast?
Which department provides information about scheduled wage and commission payments for the cash forecast?
