Suppose a firm prepares a 6-monthly cash budget, inventory budget, accounts receivable budget and accounts payable budget, and sees that ONE of these budgets forecasts a zero balance at some time within the next 6 months. Which of these budgets would cause the LEAST concern to the firm if the balance fell to zero?

(Why the answer is A, not C?)

Select one:

a. Accounts Receivable

b. Inventory

c. Cash

d. Accounts Payable