Treasury Management Chapter 3 Cash Forecasting

Cash forecasting automation cannot be used to avoid some of the most time-consuming steps.

• True

• False

• Maybe

• I don't know

It involves predicting future cash inflows and outflows over a specific period, usually short-term (e.g., weeks or months).

• Cash Payment

• Cash Budgeting

• Cash Forecasting

• Cash Concentration

The core of any cash management system is the cash budgeting.

• False

• True

• I don't know

• Maybe

This are specific cash inflows and outflows that can be predicted with a reasonable degree of accuracy.

• Distribution Method

• Scheduled Items

• Receipts and Disbursements

• Forecast Accuracy

A cash forecast is useful unless it can be relied upon to yield accurate cash flow information for some distance into the future.

• True

• False

• Maybe

• Not Sure

An element of inventory forecasting that causes so much heartburn.

• Bollwhip Effect

• Ballwhip Effect

• Bullwhip Effect

• Bolewhip Effect

The cash forecasting period is generally quite short --- anywhere from _______ months.

• 1-3 months

• 1-6 months

• 1-5 months

• 1-7 months

This is a good approach for those organizations that do not have the resources to gather, summarize, and interpret economic data by themselves.

• Report on published forecasts.

• Subscribe to a forecasting service.

• Develop an in-house forecasting model.

Several key advantages are that the information is fairly accurate for the entire economy, it is prepared by professional forecasters, and it is essentially free.

• Report on published forecasts.

• Subscribe to a forecasting service.

• Develop an in-house forecasting method.

Business cycle forecasting is useful for a cash flow forecast only if the forecast extends a considerable distance into the future.

• True

• False

• Not sure.